Exam Questions 1

Question 0

How many sq miles are in one township?

Answer 0

36

Question 1

Recording a deed gives:

Answer 1

Constructive notice

Question 2

The capitalization rate provides for a return on the investment thru:

Answer 2

Depreciation methods

Question 3

An owner sold his property through his own efforts, but still ended up paying a commission. He had what kind of listing?

Answer 3

Exclusive right to sell

Question 4

Which is these are an improper act of a real estate agent?
A) showing on only sunny days
B) submitting unrealistically low offers to seller
C) telling buyer that property is in great shape and a deal
D) keeping seller’s secret that the roof leaks

Answer 4

Roof

Question 5

ALTA policy of title insurance covers:

Answer 5

All stated conditions and title as of date of issuance

Question 6

Capitalization refers to a process used by an appraiser to:

Answer 6

Concert income into value

Question 7

Which of the following easements run with the land and is binding on all subsequent owners?
Easement appurtenant
Easement in gross
Prescriptive easement 
Easement by implication

Answer 7

Easement appurtenant

Question 8

General partnership is characterized by:

Answer 8

Unlimited liability and single taxation

Question 9

When escrow agent is handling an escrow for both parties in a transaction, she is acting as an:

Answer 9

Agent

Question 10

A person who is authorized to act legally for another is a/an:
Attorney in fact
Fiduciary
Power of attorney 
Principal

Answer 10

Attorney in fact

Question 11

If a lender needs to choose between issuing a conventional or FHA loan to a prospective borrower, what will be the primary factor in its decision?

Answer 11

Degree of risk

Question 12

Constitutional authority for zoning laws derives fr the state’s:

Answer 12

Police power

Question 13

Zoning change from commercial to residential. It’s called

Answer 13

Down zoning

Question 14

Loan that comes with Fannie Mae and Freddie Mac guidelines is know as:

Answer 14

Conforming loan

Question 15

Developers need $30 million to build a mall
Source of loan would most likely come from:
A) national bank
B) life insurance company
C) mutual fund
D) savings and loan association

Answer 15

Life insurance

Large, long term, stable, mostly commercial

Question 16

Lenders will charge a fee for document preparation and other services (its expressed as a % of the face amount of the loan). It’s called an

Answer 16

Origination fee

Question 17

Buyer want to build a single family on a vacant lot.

Appraisal method probably used will be:

Answer 17

Comparison approach

Question 18

Of the following item, which would be least likely to appear on a cloak statement as a debit to the buyer?
A) interest on an assumed loan
B) prorated taxes
C) prorated insurance premiums 
D) FHA discount points

Answer 18

Interested

Question 19

Which of these could be depreciated for income tax purposes?
A owner occupied farmhouse
B commercial Apple orchard 
C vacant land
D all of the above

Answer 19

Orchard

Question 20

Which of the following would not be included in a disclosure statement required by the truth in lending Act?
A interest rate
B annual percentage rate
C total finance charge 
D total amount financed

Answer 20

Interest rate

Question 21

A lender receives a return on a mortgage loan in the form of:

Answer 21

Interest

Question 22

A subordination clause in a deed of trust will:

Answer 22

Give priority to subsequent loans over the existing loan

Question 23

If interest is calculated on unpaid accrued interest as well as on the principal balance, it is known as

Answer 23

Compound interest

Question 24

``` A note that is negotiable and signed by a borrower is: A a security instrument B either a deed of trust or a mortgage C primary evidence of a debt D all of the above ```

Answer 24

Primary evidence of a debt

Question 25

An apartment complex owner has several vacancies one year and suffers a $5k operational loss as a result. For federal income tax purposes, she may: A deduct loss only if she lives in the building B deduct the full $5k from other ordinary income C deduct only $3k D offset the loss against any capital gains realized during that tax year

Answer 25

Deduct full $5k from income

Question 26

Easement in gross burdens who? | Servient tenement or dominant tenement

Answer 26

Servient

Question 27

Blind ad

Answer 27

Fails to identify advertiser as a real estate agent

Question 28

Name some non general liens

Answer 28

Attachment Mechanics Mortgage Property tax

Question 29

Straight note:

Answer 29

Balloon payment Secured by deed of trust Only requires payment of interest during the loan term

Question 30

Govt survey system-- | Which block contains municipal buildings?

Answer 30

16

Question 31

Covenants, conditions and restrictions that affect all properties in a subdivision are created by:

Answer 31

Deed

Question 32

A ranch is 36 miles square | What is the number of you ships contained in the ranch?

Answer 32

36

Question 33

Unlawful detainer action would be filed by who?

Answer 33

Lessor

Question 34

Laches

Answer 34

Inexcusable delay in pursuing a legal right

Question 35

A contract for the transfer of property is binding if:

Answer 35

It has an offer and an acceptance