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Real Estate Exam > Law And Practice Exam One > Flashcards

Law And Practice Exam One Flashcards

1
Q 
Number one. The bill of sale is used to convey title to: 
A. Real property 
B. Personal property 
C. Real and personal property 
D. Water rights
A

B. Personal property

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2
Q

Number two. Salespersons half of 5% commission on the 625,000 sale would be how much?

A. $16,536
B. $17,240
C. $15,625
D. $16,838

A

C. $15,625

Rationale: 625,000×5% divided by two equals 15,625

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3
Q 
3. They only want to for requisites of joint tenancy that is also required for tenancy in common is: 
A.  period time 
B. Title 
C. Interest 
D. Possession
A

D. Possession

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4
Q

Four. The owner of a condominium unit:
A. Owns a share of only the limited common elements along with other tenants.
B. May not hold the simple title to his unit
C. Will usually pay a separate tax bill. D. May not least the unit.

A

C. Will usually pay a separate tax bill.

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5
Q 
Five. A single party listing must not include: 
A. Buyers name 
B. A holdover clause 
C. Address reference 
D. Timeframe for completion
A

B. A holdover clause

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6
Q 
6. A qualified face simple estate may be: 
A.  in perpetuity 
B. Reclaimed and grantors name 
C. Transferred by Billis sale 
D. Interpreted as a gross easement
A

B. Reclaimed and grantors name

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7
Q 
Seven. Tom and Jim have a joint tenancy with Jim wishes to extinguish. He could file a suit in court for: 
A. Partition 
B. Quitclaim 
C. Quiet title 
D. Lis pendens
A

A. Partition

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8
Q 
Eight. If the interest rate is 5.25% and the monthly interest payment is $350, the principal sum would be: 
A. $50,000 
B. $80,000 
C. $70,000 
D. $60,000
A

B. $80,000
Rationale: $350 times 12 equals 4200
4200÷5.25 percent equals $80,000

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9
Q

Question nine. And which of the following scenarios must the broker make use of the licensing Buy out addendum:
A. If the broker buys any property
B. At the broker buys property listed by implying broker
C. If the broker agrees to buy a property as an inducement to list
D. The licensee Buy out addendum has been revoked

A

C. If the broker agrees to buy a property as an inducement to list

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10
Q
  1. Which of the following is correct in relationship to a counter proposal by a seller?
    A. It should incorporate the terms of the listing
    B. All the terms of the original contract must be repealed
    C. The original contract must not be signed by the buyer or seller
    D.The original contract must not be signed by the seller
A

D.The original contract must not be signed by the seller

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11
Q
  1. Calculate the sales persons commission if a sales person receives 4 to 3 split of the 7% total commission with the broker and the salesperson total sales reach $1,025,000 for the year.
    A. $41,000
    B. $52,600
    C. $62,250 D. $71750
A

A. $41,000

Rationale: 1,025,000 for the year times 7% divided by seven equals, then multiply that by four

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12
Q 
12. An unmarried couple wish to buy a property together. They may do this as 
A. Tenancy and severalty
 B. Tenancy by the entirety 
C.. Joint tenancy 
D. Owners in Escheat
A

C.. Joint tenancy

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13
Q 
13. All meets and bounds legal description start and end at: 
A. A baseline 
B. A point of beginning 
C. A survey Beacon 
D. A coordinate
A

B. A point of beginning

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14
Q 
14. Person am wishes to leave her property to her husband and niece on a 2/3/1/3 undivided basis. This can be done by utilizing: 
A. Joint tenancy 
B. Tenancy in common
C. Community property 
D. Tenancy in severalty
A

B. Tenancy in common

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15
Q 
15. I'll listing contracts must: 
A. Have a holdover clause 
B. Be notarized 
C. Have a beginning and end date or expiry date
D. Provide for a lock box
A

C. Have a beginning and end date or expiry date

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16
Q
  1. After an unresolved closingdispute involving earnest money, the broker may:
    A. Retain the earn money as earn commission
    B. Interplay to court
    C. Sue the buyer and seller jointly as well as severally
    D. Demand conclusion of closing before any party may leave
A

B. Interplay to court

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17
Q 
17. How many acres does a parcel of land 660' x 660' contain?
A. 1 acre 
B. 10 acres 
C. 100 acres 
D. 110 acres
A

B. 10 acres

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18
Q 
18. Which of the following is not required in the broker trust account documentation and records: 
A. The date of the entry 
B. The amount of the entry
C. A description of the entry 
D. The address of the payee
A

D. The address of the payee

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19
Q
  1. A deed is presumed to be transferred when:
    a. The deed is signed by the seller
    B. The deed is recorded
    C. The closing checks are disbursed
    D. The title company wants transfer
A

B. The deed is recorded

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20
Q 
20. The ride upstate to take private property for public purposes is:
 A. Eminent domain 
B. Condemnation
C. Escheat 
D. Police power
A

A. Eminent domain

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21
Q 
21. Which of the following identify property with a lot and block? 
A. Meets and bounds
B. Recorded plat 
C. US government survey
 D. Rectangular survey system
A

B. Recorded plat

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22
Q
  1. I three-bedroom house sells for $124,000 and the brokers total commission is 6% of the selling price. The commission is:

A. $6000
B. $7440
C. $20,667
D. $744

A

B. $7440

Rationale: $124,000 time 6% equals $7440

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23
Q
  1. An exclusive right to sell listing contract:
    A. Gives the employing broker the right to sign the sales contract for the seller.
    B. Does not give the employing broker the right to sign the sales contract for the seller.
    C. Is only valid ifsigned by both the employing broker and employee broker
    D. Belongs to the designated broker
A

B. Does not give the employing broker the right to sign the sales contract for the seller.

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24
Q 
24. A purchaser pursuing 100% financed Loan would most probably seek: 
A. An FH a loan 
B. A conventional loan 
C. And equity loan 
D. A VA loan
A

D. A VA loan

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25
Q 
25. Hey tract of land benefited by an easement is called a/and: 
A. Apartment estate. 
B. Dominant estate 
C. Estate in gross 
D. Servient tenement
A

B. Dominant estate

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26
Q
  1. The water rights of an owner of real property situated on the shore of the lake are known as:
    a. Riparian rights
    B. Littoral rights
    C. Lakefront rights
    D. Lakeshore rights
A

B. Littoral rights

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27
Q 
27. If taxes are paid in two installments, the taxes would become delinquent on 
A. March 1 
B. April 30 
C. June 15 
D. June 16
A

D. June 16

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28
Q
  1. Two brokers discuss setting commission rates as a fixed percentage: these brokers:
    A. Have violated antitrust laws
    B. Have not violated I antitrust laws unless acted upon
    C. Have done nothing illegal
    D. Have done nothing
A

A. Have violated antitrust laws

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29
Q 
29. A mortgagee's title policy is paid for by: 
A. The buyer
B. The seller 
C. The lender 
D. The broker
A

A. The buyer

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30
Q 
30. How many acres are contained within Nw 1/4, Sw 1/4, and SE 1/4, NE 1/4 of section 16?
A. 2.5 
B. 80
C. 10 
D. 20
A

B. 80
Rationale: One fourth of an of a section is 160 acres divided by four.

And since there is an and it starts over remember? So it’s 160 acres divided by four again and then you add the two together 40 acres +40 acres equals 80 acres.

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31
Q
  1. A seller wishes to net $845,950 for the sale of her property. If her broker is to receive a fee of 4% of the selling price and an allowance of $50 for expenses, what must the selling price be?

A. $896,757
B. $889,600
C. $898,040
D. $881,250

A

D. $881,250

Rationale 845,950 Plus $50 equals $846,000 divided by 96% equals D.

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32
Q
  1. Escrow money may be deposited in other than listing brokers escrow account:
    A. If the buyer wishes to retain fee
    B. If seller wishes to retain fee
    C. If buyer’s broker insist on retention
    D. If parties agree
A

D. If parties agree

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33
Q
  1. The highest and best use of a property is:
    A. The most profitable, legally permissible and physically possible use.
    B. They use involving the highest building
    C. The most profitable use
    D. The most feasible use
A

A. The most profitable, legally permissible and physically possible use.

34
Q 
34. The procedure which results in a small deviation from zoning requirements is known as a/and:
A. Legal non-– conforming use 
B. Variable 
C. Illegal non-– conforming use 
D. Variance
A

D. Variance

35
Q 
35. All of the following are encumbrances except: 
A. Deeds 
B. Lanes 
C. Leases 
D. Easements
A

A. Deeds

36
Q 
36. Which of the following is most likely to Void a deed? 
A. Fraud 
B. Illegal use 
C. Duress
D. Undue influence
A

B. Illegal use
Fraud is voidable
Duress his voidable
insanity by court is Void and insanity by Dr. is voidable

37
Q 
37. A section contains 
A. 640 acres 
B. 23,040 acres 
C. 36 acres
 D. 36 mile Square
A

A. 640 acres

38
Q
  1. A property valued at $120,000 is earning 8% return. What is the monthly return?

A. $9600
B. $800
C. $4800
D. $80

A

B. $800

39
Q
  1. Condominium ownership includes: a. All attached appurtenances
    B. Proprietary lease interests
    C. Individual ownership of subdivided units and undivided common interest. D. Mortgage indemnitee
A

C. Individual ownership of subdivided units and undivided common interest

40
Q
  1. Which of the following owners would qualify for capitol gains tax exemptions?
    A. Owner has owned residential property for seven years and has tenants in the property for two years
    B. Owner has on and let residential property for four years.
    C. Owner has left the commercial property for the last five years and has owned it for the last 11 years.
    D. Honor of an office building has personally occupied it for the last two years of the last five
A

A. Owner has owned residential property for seven years and has tenants in the property for two years

41
Q 
41. What is the value of property where the gross rent multiplier it is 170 and the annual rent is $12,000: 
A. $175,000 
B. $170,000 
C. $174,000 
D. $175,500
A

B. $170,000

12,000÷12 = 1000 dollars. Times the gross rent multiplier her which is 170. 1000×170 equals 170,000

42
Q 
42. If the lead based paint disclosure is not given prior to closing, the contract is 
A. Not enforceable 
B. Valid 
C. Voidable 
D. Void
A

D. Void

43
Q 
43. The most comprehensive a state of ownership in real property is 
A. Feed tail estate 
B. Fee Simple estate 
C. Homestead 
D. Littoral right
A

B. Fee Simple estate

There is no such thing as feet tail estate be. The simple estate is the most comprehensive estate

44
Q
  1. An exclusive right to sell agency may not be turd terminated prior to the expiration date when the:
    a. Agency is coupled with an interest
    B. Owner and broker declare the agency ended
    C. Principal dies
    D. Agent becomes incapacitated
A

a. Agency is coupled with an interest

45
Q
  1. If her broker tells a prospective buyer that the house has been insulated with the material which is carcinogen, the broker is:
    A. Acting appropriately
    B. Acting unethically
    C. Being disloyal to the seller
    D. Required to be a licensed environmental
A

a. Acting appropriately

46
Q
  1. In a typical agency relationship between broker and seller, the brokers commission is
    A. Set by state law
    B. Set by the federal authorities
    C. Fixed by the local Board of realtors
    D. Set by mutual agreement between the principal and the agent
A

D. Set by mutual agreement between the principal and the agent

47
Q
  1. A seller net’s $83,200 after a commission of 7% in closing costs $500 have been paid. What was the selling price

A. $95,000
B. $90,000
C. $85,000
D. $80,000

A

B. $90,000

Rationale $83,200 +500 equals $83,700 divided by 93% equals $90,000

48
Q 
48. Which of the following advertisements would be permissible under the fair housing laws? 
A. Adults only 
B. No persons under 18 
C. Cozy for one or 2
D. Not suitable for children
A

C. Cozy for one or 2

Guaranteed to be on the state exam

49
Q 
49. A local banks underwriting policy provides that the monthly mortgage payment cannot be more than 25% of the borrowers monthly gross income if the mortgage payment is $900 the monthly income of the borrower is approximately:
A. $1200 
B. $3600
C. $2250 
D. $5250
A

B. $3600

Rationale: $900 times four equals $3600

50
Q 
50. A comparative market analysis is based primarily on the economic principle of 
A. Substitution 
B. Contribution 
C. Anticipation
 D. Conformity
A

A. Substitution

51
Q
  1. An important factor in successful real property management is: hey.
    A newer building
    B. Good public services
    C. Careful selection of tenants
    D. A maintenance contract with the low-cost service provider
A

C. Careful selection of tenants

52
Q 
52. The states man by a broker that this is the best house in the neighborhood is probably: 
A. Misrepresentation 
B. Steering 
C. Puffing
 D. Illegal
A

C. Puffing

53
Q
  1. A borrower applies for $80,000 loan at 8.5% interest. The bank requires an escrow account of two months interest from the borrower. amount in escrow would be:

A. $1133.33
B. $6800.30
C. $5332.28
D. $666.67

A

A. $1133.33

Rationale/ $80,000 times 8.5% equals 6800 which should be divided by 12 equals 566×2 = $1133.33

54
Q
  1. Which of the following would be an example of a legal nonconforming use:
    A. Building a house able to withstand wind speeds of 100 mph with the zoning requirement is 80 mph.
    B. Being allowed to exceed the height restriction in the zoning laws of residential neighborhood
    C. Being allowed to continue our residential use As land formally zoned for residential use which has recently been rezoned to commercial use.
    D. Using a residential property as an office
A

C. Being allowed to continue our residential use As land formally zoned for residential use which has recently been rezoned to commercial use.

55
Q
  1. In a condominium development, which of the following is correct?
    A. Property taxes are based on the value of the entire complex
    B. Foreclosure of one unit affects all units
    C. Association insurance covers the interior of the unit
    D. Owners use the unit subject to HOA rules
A

D. Owners use the unit subject to HOA rules

56
Q 
56. One of the major differences between joint tenancy and tenancy in common is that: 
A. Joint tenancy is not probated 
B. Tenancy in common must be written 
C. Joint tenancy must be verbal 
D. Both demand equal
Interest
A

A. Joint tenancy is not probated

Tenancy in common does not need to be written /joint tenancy must be written /in tenancy in common doesn’t require equal ownership

57
Q 
57. An appraiser estimating the value of property obtains the following information: land value is $30,000 replacement of the improvements as $120,000 depreciation is 30% what is the value of the subject property?
A. $114,000 
B. $105,000 
C. $130,000 
D. $140,000
A

A. $114,000

Rationale: hundred and $20,000 -30% equals $84,000. $84,000 plus $30,000 equals $114,000

58
Q 
58. Which form of land management read recognize this point of beginning? 
A. Metes and bounds 
B. Rectangular survey 
C. Recorded plat 
D. Lot and block
A

A. Metes and bounds

59
Q 
59. Time, possession, interest and title relate to: 
A. Joint tenancy 
B. Tenancy in common 
C. A partnership 
D. Severalty ownership
A

A. Joint tenancy
Remember PI TT
Possession time title interest

60
Q
  1. Which would not be considered in the comparison approach:
    a. Cost of comparable properties
    B. Accrued depreciation
    C. Cost per square foot
    D. Condition of property
A

B. Accrued depreciation

Why not accrued depreciation? Only in cost approach is there accrued depreciation

61
Q 
61. At conditional use permit would reflect a slight variance in 
A. Easements 
B. Setbacks 
C. Zoning 
D. Covenants
A

C. Zoning

62
Q
  1. A buyer purchasing a house in which the security system on a lease is owned by a security company
    A. Must take over the lease
    B. Is never permitted to take over the lease
    C. Should negotiate with security company if he was just to take over the lease
    D. Becomes the owner of the security system because it’s a fixture
A

C. Should negotiate with security company if he was just to take over the lease

63
Q 
63. Which type of description would include beginning at the… 
A. Metes and bounds 
B. Lot and block 
C. Government survey 
D. Colorado coordinate
A

A. Metes and bounds

64
Q 
64. The difference between a license and an easement is stat: 
A. And easement can be canceled 
B. A license cannot be canceled 
C. A license can be canceled 
D. A license must be verbal
A

C. A license can be canceled

A license means giving ones permission for use. You give someone permission to walk across your property. It can also be canceled

65
Q 
65. Mineral rights: 
A. Always transfer with the deed 
B. Our personal property 
C. May belong to a third-party 
D. Are considered a fixture
A

C. May belong to a third-party

66
Q 
66. The brokers commission: 
A.  is always negotiable 
B. Is determined by seller
 C. Is set at 7% 
D. Is never paid by the buyer
A

A. is always negotiable

State exam likes this question

67
Q 
67. An improvement location certificate would most likely reveal 
A. Easements on the property 
B. Claims of competing titleholders 
C. Adverse soil conditions 
D. Encroachments
A

D. Encroachments

68
Q
  1. Which of the following would most likely result in a contract being declared void:
    A. One of the parties is convicted drug user
    B. One of the parties is a 16-year-old high school student
    C. One of the parties has been certified by court as insane
    D. Both parties are HIV-positive
A

C. One of the parties has been certified by court as insane

69
Q
  1. A direct real estate origination is available from which of the following:
    A. FHA
    B. FNMA
    C. The Federal Home Loan Mortgage Corporation
    D. Regional credit union
A

D. Regional credit union

70
Q
  1. Discrimination against tomorrow based on age is addressed in:
    A. The truth in lending act
    B. The equal credit opportunity act
    C. The real estate settlement procedures act
    D. The Uniform Commercial Code
A

B. The equal credit opportunity act

71
Q
  1. A house was sold for 200 thousand dollars and the loan – to – value ration was 80% what was the loan amount?

A. $200,000
B. $220,000
C. $160,000
D. $140,000

A

C. $160,000

$200,000 times 80% equals $160,000

72
Q
  1. What are the two remedies for buyer default?
    A. Liquidation damages/specific performance
    B. Judicial enforcement /criminal consequence
    C. Escheat/probate
    D. Descent/disposition
A

A. Liquidation damages/specific performance

73
Q
  1. Abandoned fixtures owned by a commercial tenant may become the property of the landlord through:
    A. Laws of abandonment
    B. Dereliction
    C. No provision when tenant reclaims the fixtures within 30 days
    D. Annexation
A

A. Laws of abandonment

74
Q 
74. Which type of mortgage would be used to secure both real and personal property? 
A. A blanket mortgage 
B. A package mortgage 
C. I participation mortgage 
D. A purchase money mortgage
A

B. A package mortgage

75
Q
  1. A 6% commission on a $720,000 property was split 3 to 2 with the salesman receiving the larger share. The salesman received?

A. $25,029
B.$25,290
C. $25,920
D. $25,092

A

C. $25,920
Rationale 6% times $720,000 equals43,200 divided by five equals
8640. 8640×3 = 25,920

76
Q
  1. A buyer’s broker will be considered to have abandoned their buyer if they:
    A. Show only two houses each tour
    B. Failed to abide by contract requirements
    C. Don’t call buyer for three days
    D. Works with too large client base
A

B. Failed to abide by contract requirements

77
Q 
77. A monument would be used to: 
A Determine size of lots 
B. Determine location of lots 
C. Determine ownership liability 
D. Determine recording priority
A

B. Determine location of lots

78
Q
  1. A developer of an industrial park would probably be mostconcerned with
    a. Deed restrictions
    B. Environmental issues
    C. Adverse possession
    D. Rights of prescription
A

B. Environmental issues

79
Q
  1. If the seller received a notice to correct, but the seller and buyer have not agreed in writing to a settlement, what happens?
    A. The contract shall terminate one calendar day following the resolution deadline
    B. The seller must fix the problem before closing
    C. If the has not fixed the problem, the contract is terminated immediately D. The seller will likely sue the buyer for breach
A

A. The contract shall terminate one calendar day following the resolution deadline

80
Q
  1. A tract of land 65 feet by hundred sold for $1.25 per square foot plus $10 per front foot. The total selling price is:

A. $8125
B. $8775
C. $73,125
D. $65,000

A

B. $8775
Rationale –
65×100 is 6500 feet times $1.25 equals 8125+650 for front foot = 8775

81
Q

Beginning block

A

Finish block

Real Estate Exam (21 decks)

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