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Real Estate COPY COPY > Midterm > Flashcards

Midterm Flashcards

1
Q 
Warehouses, factories and power plants are examples of:
A. Commercial property
B. Industrial property
C. Special use property
D. Mixed use property
A

B

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2
Q 
Real estate markets are best described as:
A. Mobile
B. Balanced
C. Local
D. Immune to supple and demand
A

C

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3
Q 
The word improvement refers to all of the following EXCEPT:
A. Streets
B. Sanitary sewer system
C. Trade fixtures
D. The foundation
A

C

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4
Q 
Karen is interested in a house that fits most of her needs, but is located in a busy downtown area where she is not sure she wants to live. Her concern regards which economic characteristic? 
A. Physical deterioration 
B. Area preference 
C. Permanence of investment
D. Immobility
A

B

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5
Q

Fixtures are:
A. Real property
B. Chattels
C. Removable by the tenant before the expiration of the lease
D. Removable by the tenant after the expiration of the lease

A

A

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6
Q 
Which of the following is considered to be the greatest economic characteristic of a land? 
A. Area preference
B. Permanence of investment
C. Scarcity
D. Uniqueness
A

A

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7
Q

Rent would be best defined as:
A. The contractual consideration to a third party
B. The consideration for the use of real property
C. All the monies paid by the lessor to the lessee
D. The total amount owed under the terms of a lease

A

B

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8
Q

All of the following could be considered fraudulent EXCEPT:
A. Deceitful or dishonest practices
B. Negligent misstatements about the property
C. Omitted statements of material face. Exaggerated statements about the property

A

D

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9
Q

The owner releases store space to Milan for a restaurant, Milan installs trade fixtures. When do the trade fixtures become fixtures?
A. When the lease expires if not removed
B. When Milan defaults on his rental payments
C. When the lease takes effect
D. When they are installed

A

A

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10
Q

A seller has listed her home with the broker for $290,000, and the broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $285,000 and the seller excepts it. In this situation:
A. The broker has violated his agency relationship with the seller
B. The broker was unethical, but the seller did you get to sell her property
C. The broker acted properly to obtain a quick offer on the property
D. Any broker is authorized to encourage such bids for the property

A

A

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11
Q 
Under the provisions of a typical commercial lease, any trade fixture that remains on the property after the lease has expired will be the property of the:
A. Lessor
B. Lessee
C. Property manager
D. Whoever removes them
A

A

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12
Q

For a lease to be valid, it must contain all of the following EXCEPT:
A. The signatures of both the lessor and lessee
B. A statement of the specific length and time
C. A statement of the retention of the re visionary interest by the lessor
D. A description of the premises

A

C

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13
Q

A broker who is employed by a managing broker told a prospective buyer that the hell she was looking at is “the best house in the area.” Because of the statement:
A. The broker was guilty of fraud
B. The managing broker was guilty of fraud because the employing managing broker is responsible for the actions of the broker
C. The broker was engaging in puffing
D. The broker would be guilty of fraud only if the buyer purchased the house

A

C

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14
Q

Which of the following is true regarding the duties of a real estate broker who is acting as the agent of the seller?
A. The broker is obligated to render faithful service to the principal
B. It is okay for the broker to disclose the sellers minimum price
C. The broker should present to the seller only the highest offer for the property
D. The broker can guarantee the seller will take a full price offer

A

A

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15
Q

The principal difference between an estate for years and estate from year-to-year is that an estate:
A. For years is a life estate
B. For years cannot be terminated
C. From year-to-year must be in writing
D. From year-to-year has no expiration date

A

D

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16
Q

A lease that will terminate within one year of its inception:
A. Is invalid
B. Violates the provisions of the statue of frauds.
C. Must be in writing
D. Can be verbal

A

D

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17
Q 
When a lien against a parcel of real estate may result from a lawsuit currently before the court, one examining the public records would look for:
A. He chain of title
B. A lis pendens
C. A suit to quiet title
D. A judgement lien
A

B

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18
Q 
In Illinois, a broker sells a buyer a property listed by another brokerage firm in the MLS. The broker has been working with the buyer for many months but does not have a written agency contract with the buyer. This broker has created an implied agency with:
A. Neither party 
B. The buyer
C. The seller
D. The public
A

B

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19
Q 
Under which of the following types of liens can both the real property and the personal property of the debtor be sold to pay the debt?
A. Real estate tax liens
B. Mechanics lien
C. Judgement lien
D. Assessment lien
A

C

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20
Q 
Mechanics liens are based on:
A. Federal law
B. State law
C. Common law
D. Case law
A

B

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21
Q 
The lead-based paint reduction act refers to property built prior to:
A. 1987
B. 2000
C. 1996
D. 1978
A

D

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22
Q

A mechanics lien can be filed against an owners real estate by an:
A. Mechanic not paid for auto repairs ordered
B. Lumber company furnishing material is ordered by the company owner
C. Real estate managing broker claiming a commission due to them
D. Individual who obtained a judgment against the property owner

A

B

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23
Q 
A property owner contracted to have a heated is evil constructed on her property. When the heated gazebo was finished, the owner refused to pay for the improvement and the contractor file the lien for nonpayment. This lien was most likely:
A. General lien
B. Special lien
C. Specific lien
D. Voluntary lien
A

C

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24
Q 
If the landlord fails to provide heat to an apartment and the tenant is forced to vacate the premises, this is an example of:
A. Abandonment 
B. Actual eviction 
C. Constructive eviction
D. Lessor negligence
A

C

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25
Q 
All of the following are specific liens EXCEPT:
A. Real estate taxes
B. Judgements
C. Mortgages
D. Mechanics lien
A

B

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26
Q 
Taxes levied on a property owner to help fund the installation of sidewalks or sewers are called:
A. Ad valorem taxes 
B. General property taxes
C. Special excise taxes 
D. Special assessments
A

D

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27
Q

what would a judgment, a lis pendens notice and a foreclosure have in common?
A. They are all voluntary
B. They are all in voluntary
C. They are liens but would not create a cloud on the title
D. They are all general liens

A

B

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28
Q

Which of the following would be considered dual agency?

A. The sponsored licensee acting for both the buyer and the seller in the same transaction.
B. Managing brokers cooperating with each other.
C. The broker representing different principals
D. The managing brokers office listing & selling the same property.

A

A

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29
Q 
In Illinois, a contractors right to a lien expires how long after completion of the work, if no suit is filed within that time?
A. 6 months
B. 1 year
C. 18 months
D. 2 years
A

D

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30
Q

A metes and bounds legal description:
A. Can be made only in areas excluded from the rectangular survey system
B. Is not acceptable in court in most jurisdictions
C. Must commence and finish at the same identifiable point
D. Is used to complete areas omitted from recorded subdivision plat’s

A

C

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31
Q 
A particular parcel of land is described by reference to how many principal meridians?
A. 0
B. 1
C. 2
D. 3
A

B

32
Q 
A township contains:
A. 6 square miles
B. 640 acres
C. 23,040 square feet
D. 36 sections
A

D

33
Q 
When a tenant holds possession of the landlords property without a definite least term, but with the consent of the landlord, this is called:
A. Tenancy in common
B. Tenancy at sufferance
C. Tenancy at will
D. Trespass
A

C

34
Q 
Under a percentage lease, the leasee may be requested to pay:
A. Maintenance
B. Real estate taxes
C. Insurance
D. A percent of gross receipts
A

D

35
Q 
In Illinois, landlords are required by law to pay interest on tenant security deposit if they hold deposits for more than six months and received deposits on residential leases and properties of: 
A. Fewer than 5 units
B. 25 or more units
C. 15 or more units 
D. 1025 or more units
A

B

36
Q

A real estate managing broker acting as an owners property manager:
A. Must not profit from private contracts at the expense of the owner
B. May manage the clients property to his or her own advantage
C. Need not maintain complete and accurate trust account records
D. Can personally collect the interest earned on trust account funds

A

A

37
Q

The property managers chief concern should be that:
A. The property is seldom vacant because it is consistently rented at the lowest possible rent
B. The property is managed to achieve the highest rate of return possible for the owners investment
C. The property managers time is maximized in his or her management of the property
D. The property exhibits the proper amount of the owners pride of ownership

A

B

38
Q

All of the following should be considerations in selecting a tenant for the property except the:
A. Size of the available space relative to the tenants requirements
B. Tenants ability to make the rental payments
C. Compatibility of the tenants business with those of other tenants
D. Ethnic background of the tenant and his or her employees

A

D

39
Q

What is the difference between a general and a specific lien?
A. A general lien cannot be enforced in court, while specifically and can be enforced
B. A specific lien is held by one person, while a general lien is held by at least two person
C. A general lien covers all of the debtors property, while a specific lien covers only a certain piece of real property
D. A specific lien covers real estate, while a general lien covers personal property

A

C

40
Q 
George owns a home, his principal place of residence, and a duplex. She pays the property taxes on his home, but fails to pay the property taxes on the duplex. George may find that a lien has been placed against his:
A. Home
B.  Duplex
C.  Home and duplex
D. Home, duplex and personal property
A

B

41
Q 
The duties of a property manager generally would not encompass:
A. Renting space to tenants
B. Preparing a budget
C.  Developing a management plan
D. Repairing a tenant fixture
A

D

42
Q 
The section of land reserved for school purposes and the rectangular survey system is section:
A. 12
B. 16
C. 20
D. 36
A

B

43
Q 
A land survey would best be described as a:
A. Legal description of the land
B. Graphic description of the land
C. Narrative description of the land
D. Visual description of the land
A

B

44
Q 
Which of the following is the best way to ensure that there are no encroachments and verify the boundaries of a parcel of land?
A. Write a legal description 
B. Get a spot survey
C. Find the monuments
D. Verify the benchmarks
A

B

45
Q 
The owner has a large parcel of land surveyed into lots and streets and files a subdivision plat. Each lot can be legally described by use of which of the following? 
A. Street address
B. Government survey
C. Metes and bounds
D. Lots and blocks
A

D

46
Q 
An area of land that is two miles by three miles contains how many acres? 
A. 10,560
B. 18,540
C. 3,840
D. 16,270
A

C

47
Q 
Deed restrictions could be incorporated by all of the following EXCEPT the:
A. Previous owner
B. Developer
C. Local building and zoning 
D. Subdivider
A

C

48
Q

According to the interstate land sales full disclosure act, if the property report is not given to the prospective purchaser at least three days before the contract is signed:
A. The purchaser may revoke the contract, and his or her option, up to midnight of the seventh calendar day following the signing of the contract
B. The purchaser may revoke the contract up to two years following the signing of the contract
C. The subdivider developer must see that the purchaser received the report within two years of the signing of the contract
D. The subdivider developer must say that the property report is delivered to the purchaser before any construction has started on the property

A

B

49
Q 
A property has an assessed value of $85,000. The equalization factor is 115% and the tax rate is $4 per $100 of value. What is the tax bill?
A. $3,910
B. $3,740
C. $3,400
D. $3,470
A

A

50
Q 
The manager of a commercial building has many responsibilities a connection with operation and maintenance of the structure. The manager would normally be considered the agent of the:
A. Lessor of the building
B. Lessee of the building
C. Lessor and the lessee 
D. Resident manager
A

A

51
Q

The major intent of zoning regulations is to:
A. Demonstrate the police power of the state
B. Ensure the health, safety and welfare of the community
C. Set limits on the amount of kinds of business in a given area
D. Protect residential neighborhoods from encroachment by business and industry

A

B

52
Q

Rules and regulations adopted by government agencies:
A. Serve as general guidelines only
B. Are used to administer and enforce legislative acts
C. May not prescribe penalties for violations
D. Do not have the force and effect of legislative acts

A

B

53
Q

Before a real estate license can be suspended or revoked, the licensee is usually entitled to:
A. Representation in court by the states attorney
B. A hearing before the jurisdiction’s licensing authority
C. A probationary period
D. A opportunity to make restitution for any financial misleadings

A

B

54
Q 
The managing broker receives the check for earnest money from the buyer and deposit the money in escrow account. By doing this she protects herself from a charge of:
A. Commingling
B. Novation
C. Lost of stolen funds
S. Embezzlement
A

A

55
Q

Who of the following is exempt from Illinois real estate licensing requirements?
A. A person who sells real estate options
B. An employee of the Illinois department of conservation who regularly buys and sells park land
C. A person who collects rent for the use of real estate
D. A person who employs leasing agents

A

B

56
Q

Brokers may create a corporation that is limited in the following fashion.
A. A managing broker must control 51% of ownership
B. The broker cannot own more than 49% of the corporation
C. The corporation can be used only to accept compensation from their managing broker
D. The corporation must be registered with the Secretary of State

A

C

57
Q 
A 50' x 100' lot has 2,400 square foot house on it that contains four bedrooms and three bathrooms. What percent of the lot is not taken up by the house? 
A. 21%
B. 48%
C. 50%
D. 52%
A

D

58
Q 
How many acres are in the NW 1/4 of the SE 1/4 and the S 1/2 of the NE 1/4 of a section? 
A. 100
B. 80
C. 120
D. 180
A

C

59
Q 
And I'm nervous to list his property on the condition that he received at least $47,300 after paying a 5% managing brokers commission and paying $1150 in closing costs. At what price must it sell? 
A. $48,450
B. $50,815
C. $50,875
D. $51,000
A

D

60
Q 
The initial fee to obtain a brokers license is:
A. 100
B. 125
C. 150
D. 200
A

B

61
Q

By executing a listing agreement with a seller a real estate brokerage company becomes:
A. A procuring cause
B. Obligated to open a special trust account
C. An agent of the seller
D. Responsible for sharing commissions

A

C

62
Q 
The provision in a listing agreement that gives additional authority to the brokerage and obligates the brokerage to distribute the listing to other brokers is an:
A. Joint listing clause
B. Multiple listing clause
C. Net listing clause
D. Open listing clause
A

B

63
Q

Broker Wayne took the listing on the property and shortly thereafter discovered that his client had been previously declared incompetent by the court. The listing is now:
A. Binding as the broker was acting in good faith
B. Still valid
C. The basis for the commission if the produces a buyer
D. Void

A

D

64
Q 
The type of listing agreement that provides for the payment of the commission to the brokerage even though the owner make the sale without the aid of the brokerage is called an:
A. Exclusive right to sell listing
B. Open listing
C. Exclusive agency listing
D. Option listing
A

A

65
Q 
A listing agreement in which the brokerage commission is contingent on the brokerage being able to produce a buyer before the property is sold by the owner or another brokerage is called a:
A. Open listing
B. Net listing
C. Exclusive right to sell listing
D. Exclusive agency listing
A

A

66
Q 
A portion of Walters building was inadvertently built of gregs land. This is called an:
A. Accretion
B. Avulsion
C. Encroachment 
D. Easement
A

C

67
Q 
All of the following estates would have a definite duration except an:
A. Freehold estate
B. Less than freehold estate
C. Estate for years
D. License
A

A

68
Q

The local utility company… Frank garden to install a natural gas line. The company claims they had available easement and proved it through the county records. Frank claimed the easement was not valid because he did not know about it. Does the company have a valid easement?
A. Yes, the easement was valid even thought the owner did not know about it
B. Yes, because the utility easements are appurtenant easements
C. No, the easement was not valid because it had not been used during the entire time that frank owned the property.
D. No, the easement was not valid because frank was not informed of its existence when he purchased the property

A

A

69
Q

The ownership rights of real estate do not include:
A. The buildings located on the property
B. Air space above the property
C. Easements running with the property
D. Navigable rivers running through the property

A

D

70
Q 
Jillian on 50 acres of land with 500 feet of frontage on the lake. She wishes to subdivide the parcel into lots, but she wants to retain control over the lake frontage while allowing a lot on her to have excess of the lake. Which of the following access rights would provide the greatest protection for a purchaser?
A. An easement in gross
B. An appurtenant easement
C. An easement by necessity
D. A license
A

B

71
Q 
Kate has the legal right to occupy and use a certain residential structure. All of the following would describe canes interest in the property, except:
A. Fee simple
B. Remainder
C. Leasehold
D. Life estate
A

B

72
Q 
Emmett lives in an apartment building. Belin and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, Emmett on stock in the corporation and has the least is apartment. This type of ownership is called a:
A. Condominium 
B. Planned unit development 
C. Time share
D. Cooperative
A

D

73
Q 
Val and John are co-owners any feesimple interest in a small apartment building. John dies intestate and leaves no estate to be distributed to his heirs. Val is neither related to John nor a creditor John. Which of the following would explain my val acquire John's address?
A. Adverse possession 
B. Reversionary rights
C. Joint tenancy 
D. Foreclosure
A

C

74
Q 
An ownership interest that is based on annual occupancy intervals is a:
A. Leasehold
B. Timeshare 
C. Condominium 
D. Cooperative
A

B

75
Q 
Equal rights of possession are characteristic in all of the following, except:
A. Tenancy in common
B. Tenancy at will
C. Tenancy by the entirety 
D. Joint tenancy
A

B

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