Class 1

Question 1

A local texting, jurisdiction assesses It’s taxable property at a rate of 95%. If the market value for one property were $115,000 the assessed value of the property would be?

Answer 1

$109,250

Question 2

The assessed value of a property is $138,500. If the market value is $173,125, what is the assessed rate?

Answer 2

80%

Question 3

What would the approximate market value of a property that has an assessed value of $143,200 and an assess rate of 75%?

Answer 3

$190,933

Question 4

The local tax rate in one community is $1.15 per hundred. If a property Is assessed at $140,250. What are the annual taxes?

Answer 4

$1612.88

Question 5

Property owner made two payments of $992.25 each to pay his tax bill for the year if his property is assessed at 90% of its market value of $210,000, what is the annual tax rate per hundred

Answer 5

$1.05

Question 6

The local tax rate is 7.5 mils for a property that has an assessed value of $99,000. What is an annual tax?

Answer 6

$742.50

Question 7

The assessed value of a property is $131,250 if the tax rate is 1110 mills per hundred what are the annual taxes?

Answer 7

$1456.88

Question 8

Property In the taxing jurisdiction is at 3/4 of the market value if one owner had to pay a tax bill of $980. What is the estimated value of the property if the tax rate is $1.50 per hundred of the assessed value

Answer 8

$87,111

Question 9

What would be the sale price of a property if the owner paid a tax bill of $852 on the property was assessed at 86% of its sale price and the tax rate
was $1.22 per hundred

Answer 9

$81,204.73

Question 10

The taxing authority of Anytown USA has decided to increase values by 10% for the next year and lower the tax rate by 20% if the present assessed value is $169,000 in the present tax rate is $1.40 per hundred what would be the effects on the taxes for the next year

Answer 10

The taxes will decrease by $283.92

Question 11

A homeowner purchase in insurance policy that covers his property for a total loss of $186,400. What is the annual premium if the cost of the insurance is $.90 per hundred of the insurance value

Answer 11

$1,677.60

Question 12

What would be the annual premium rate per thousand for an insurance policy if the owner pays $642 per year for the insurance in the face value of the policy is $168,000

Answer 12

$3.82

Question 13

As a general rule, a trade fixture:

Answer 13

Becomes the property of the landlord, if it is not removed before the lease expires

Question 14

We considering test that are used to determine if an item is real or personal it can be said that:

Answer 14

The intent of the annexor the primary test

Question 15

A tenant is less than 100 acres of land to grow a crop of corn one month before harvest time the tenant lease expired based on this

Answer 15

The tenant may harvest the crab, even though the lease has expired

Question 16

Of the following items listed, which would be most likely considered personal property:
A . House keys.
B. Built-in refrigerator.
C. Curtain rides.
D. Ceiling fan.

Answer 16

Curtain rods

Question 17

Which of the following would not be considered an impertinence to real estate?
A a fence
B built-in stove
C a tree
D a tried fixture

Answer 17

A trade fixture

Question 18

A seller has decided to remove a small blue spruce when he moves. According to common law practice, which of the following would be incorrect?

Answer 18

seller may move the blue spruce as long as he removes it before closing

Question 19

Which of the following statements is correct regarding the conveyance of a title?
A. All items on the property at the time the contract was entered into our convey to a buyer.
B. Air rights must be conveyed separately to a buyer.
C. Only surface rights and air rights conveyed to a buyer.
D. Mineral rights are conveyed to a buyer unless previously sold or leased to another.

Answer 19

Mineral rights are conveyed to a buyer unless previously sold or at leased to another

Question 20

What would be the correct phrase regarding the heterogeneity of real estate?

Answer 20

No, two tracks of land are the same

Question 21

What is avolution?

Answer 21

The loss of land due to a violent act of nature

Question 22

A young couple looking for a new home have told our agent that they want to be located to the interstate so they have quick access to work. The couple is most likely referring to the concept of.

Answer 22

Linkage

Question 23

A court may allow a buyer to sue a seller to force the completion of a contract because the real estate is considered to be

Answer 23

Heterogenetic

Question 24

A builder is constructing a house where parts of the Building work fitted together at a factory. What method of construction is being used by the builder?

Answer 24

Pre-fabricated

Question 25

The owner of a cottage that is located on a non-navigable waterway has the right to use the waterway because of his

Answer 25

Riparian rights

Question 26

1. A married couple, who file joint taxes each year, have so ld the home they have lived in for the past 2 years. If they make a profit of 510,000, 2 years. If they make a profit of $510,000, which of the following would be CORRECT? A. They owe no capital gain tax because they file joint taxes B. They will have to pay a tax on all profits that exceeds $250,000 C. They will have to pay taxes on all profit because they did not live in the property for 5 years D. They will owe taxes on $10,000

Answer 26

D. They will owe taxes on $10,000.

Question 27

Which of the following would be an incorrect statement regarding the recording of documents. A. A document becomes official when it is recorded in any court in the state where the property is located. B. Generally, documents must be notarized before they can be recorded. C. The name of the party who prepared the document is required on the document before it can be recorded. D. Recording establishes official ownership of property.

Answer 27

A. A document becomes official when it is recorded in any court in the state where the property is located.

Question 28

A buyer who wants the seller to verify that he has possession of the property and that he is in fact, an unmarried mashould ask the seller for? A. An opinion of title certificate B. A certificates of title C. A verification letter D. An affidavit of title

Answer 28

D. And affidavit of title.

Question 29

A buyer purchasing 100 acres of land, who wants to make sure that his rights and interest such as his mineral rights are protected should do which of the following. A. Obtain a mineral deed from the seller in addition to the deed that conveys the title. B. Purchase the owners title policy C. Search the records for any and all defects in the title. D. Have the seller guarantee the title

Answer 29

B. Purchase the owners title policy.

Question 30

A buyer obtain an FHA insured mortgage from a Linda, who requires the buyer to purchase a mortgage title insurance policy. Four years later a Missing heir made a claim against the buyers title. At this point, it can be said that the: A. Lender and the owner are protected through the mortgage title policy B. Heir cannot sue the owner because the title is insured C. Owner may lose his property to the heir. D. I wanna see the seller for any losses he may incur

Answer 30

C. Owner may lose his property to the heir ( owners policy should be purchased, mortgages, title insurance protects the lender not the buyer)

Question 31

Cash flow can be specified as: A. The net income of a property less its debt service. B. Spendable income. C. The amount of taxable income. D. The owners effective gross income.

Answer 31

B. Spendable income.

Question 32

Depreciation that is allowed as a deduction on investment properties can be viewed as: A. A tax Shelter B. Leverage C. Boot D. Arbitrage

Answer 32

A. A tax shelter.

Question 33

Investors who pulled our money for investment purposes are most likely creating: A. A real estate corporation. B. A partnership. C. Joint venture. D. Syndication.

Answer 33

D. Syndication.

Question 34

As a general installment sale would allow the seller of the property to: A. For the payment of capital gains B. Spread out the payment of capital gains C. Received a tax credit D. Reduce his capital gain tax

Answer 34

B. Spread out the payment of capital gain.

Question 35

After purchasing a property, a buyer decided to sue the seller for misrepresentation because of a possible easement that the buyer was not told about. Upon discussing the case within an attorney, the attorney told the buyer he will probably lose his case; A. Because the buyer had constructive notice of the easement. B. Because buyers seldom win suits regarding misrepresentation. C. The buyer is suing the seller and not the agent. D. Buyers cannot sue sellers unless they had a home inspection.

Answer 35

A. Because the buyer had constructive notice of the easement.

Question 36

All of the following may be deducted by a homeowner to reduce our taxable income, except; A. Real estate taxes B. Mortgage interest C. Depreciation D. State taxes

Answer 36

C. Depreciation.

Question 37

A freehold estate can be best defined as A. An estate that comes into being when a property is leased. B. In a state that exist for an undetermined length of time. C. An estate where there there is no conditions to ownership D. An estate where the grantor retains a future interest in the property

Answer 37

B. In estate that exist for an undetermined length of time.

Question 38

Which of the following statements would be true of a fee simple interest in property? A. It is a type of leasehold interest. B. It is an interest that can be only transferred through the purchase of a property. C. It terminates upon the death of the owner. D. It is an estate that is unencumbered by other interest.

Answer 38

D. It’s an estate that is an unencumbered by other interest.

Question 39

B has told Ali that she can come on his land to look for minerals. Six months later B refused to allow Ali to enter upon the land base on these circumstances, it would appear that. A. Ali has an easement, and B cannot prevent her from entering upon the land. B. B gave Ali a mineral right which cannot be revoked. C. B gave Ali A license which is revocable D. Ali has a profit

Answer 39

C. B gave Ali a license which is revocable.

Question 40

J receive a life estate upon the death of her aunt M. J Wants to sell the property. Can Jay do this? A. Yes, as long as the buyer pays, the purchase price to whomever has the future interest B. Yes, as long as the buyer knew, their interest would terminate upon the death of J C. No, life to stay cannot be sold. D. No, if the life of state is sold, it automatically terminate

Answer 40

B. Yes, as long as the buyer knew, their interest would terminate upon the death of J.