Deck 1

Question 1

The owner of an interest in commonly held property who wishes to dispose of
the property, while the other owners do NOT want to do so, will probably

Answer 1

begin a suit for partition.

Question 2

How does a creditor who has obtained a judgment get satisfaction against a
debtor who will not pay?

Answer 2

Writ of execution.

Question 3

Legal descriptions using the government survey system are NOT generally
used in

Answer 3

the original 13 states.

Question 4

A homeowner is willing to let his neighbor park an RV in his backyard. He does
NOT want to make the permission permanent in case he dislikes others who
might move next door in the future. What should he give his neighbor?

Answer 4

A license.

Question 5

At the time of harvest, crops that require annual planting are generally
considered to be

Answer 5

personal property.

Question 6

Two lots of the same size are sold on a street. The lot on the corner sells for
$20,000 more than the lot in the middle of the street. Which of the following
characteristics MOST likely explains the price difference?

Answer 6

Situs

Question 7

A deed restriction is applicable to the activities of

Answer 7

all owners, present and future.

Question 8

If conditions for purchase are included in a deed and these conditions are
violated, what is the penalty?

Answer 8

Return of the property to the original owner.

Question 9

The principal difference between zoning and planning as they relate to land
use control is that zoning

Answer 9

is a legal implementation while planning is a process.

Question 10

The power vested in the government to establish legislation to preserve order,
protect the public health and safety, and promote

Answer 10

police power.

Question 11

A lawsuit for inverse condemnation may be brought by

Answer 11

a homeowner.

Question 12

An environmental impact statement typically describes the effects of a
proposed project on factors such as

Answer 12

public health and safety.

Question 13

According to the principle of progression, a three-bedroom, one-story home is
MOST likely to bring the highest sales price if located in a neighborhood in
which

Answer 13

most homes are larger than the sale home.

Question 14

The terms “littoral,” “riparian,” and “appropriative” refer to

Answer 14

water rights.

Question 15

A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the couple can
expect the value of their parcel to increase at some

Answer 15

anticipation.

Question 16

A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest

Answer 16

a competitive market analysis to determine the property’s

Question 17

Straight-line method is not used to

Answer 17

Calculate the reproduction or replacement

cost of a building

Question 18

The Appraisal approach that MOST reliably estimates the sales price of a
single-family residence?

Answer 18

Market data

Question 19

An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than

Answer 19

$250,000.

Question 20

When more than one approach to value is applied to a property and different
indications of value are produced, how should the final estimate of value be
determined?

Answer 20

Reconciliation

Question 21

When a property owner uses his home as collateral for a loan and creates a
lien in favor of the lender, title is held by the
Question Result: Incorrect Your answer: mortgagee.

Answer 21

mortgagor.

Question 22

Discounts points are

Answer 22

computed as a percentage of the selling price.

Question 23

A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to

Answer 23

demand immediate payment of the entire note.

Question 24

The Federal laws regulates the advertisement of a lender’s credit terms (rates, payment, etc.) is

Answer 24

Regulation Z.

Question 25

Usury laws were enacted to protect the

Answer 25

borrower.

Question 26

A loan which requires the borrower to pay interest only until the maturity date (or due date), and then to pay the entire principal on the maturity date, is called a

Answer 26

term loan.

Question 27

The FHA functions MOST like

Answer 27

an insurance company.

Question 28

The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that

Answer 28

he is no longer the listing agent.

Question 29

A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?

Answer 29

Agency coupled with an interest.

Question 30

During the listing presentation, the seller questions the amount of commission to be paid and is told

Answer 30

the amount of commission is negotiable.

Question 31

One common method for controlling the problems created by conflict of interest in dual representation is

Answer 31

allowing a broker to designate separate salespeople within the company as legal representatives of each of the clients.

Question 32

The relationship in which the agent is placed in the position of trust and confidence to the principal is known by the term

Answer 32

fiduciary.

Question 33

In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?

Answer 33

One.

Question 34

A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when

Answer 34

the seller accepts the offer.

Question 35

An agency relationship between a property owner and a property manager is usually created by

Answer 35

a management agreement.

Question 36

A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with

Answer 36

the builder.

Question 37

Another term for the owner of a property listed with your firm is the

Answer 37

client.

Question 38

At the time of listing, the seller tells the listing agent they are moving because the neighbor has loud parties every weekend. The agent should

Answer 38

tell potential buyers about the parties.

Question 39

A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should

Answer 39

tell the seller to disclose the termite treatment on the property disclosure.