Final Exam - Part 1

Question 1

Airspace above a parcel of land is:

Answer 1

real property

Question 2

All of the following are real property except:

Answer 2

chattels

Question 3

In a dispute over fixtures, courts tend to favor

Answer 3

Tenant’s over Landlords

Question 4

The right of a land owner along a river to take water is called:

Answer 4

riparian rights

Question 5

All of the following “run with the land”, except:

Answer 5

current harvest rights

Question 6

For how much assessed value is the Homeowner’s Property Tax Exemption?

Answer 6

$7,000

Question 7

A person appointed by the court to handle the estate:

Answer 7

administrator (trix)

Question 8

A type of deed that contains an after acquired clause:

Answer 8

grant deed

Question 9

“A” deeds to “B” and “B” takes possession but does not record the deed. “A” then deeds the same property to “C” who records the deed. Based on this information, title probably vests in:

Answer 9

Vests to B

Question 10

If a married person with one child dies intestate and leaves separate property, the descendant’s interest passes to the:

Answer 10

surviving spouse and child

Question 11

The highest form of ownership a person can have in a piece of property is:

Answer 11

fee simple absolute

Question 12

“A” deeds a life estate to “B” and upon “B” death title returns to “A”. This is an example of what type of life estate?

Answer 12

estate in reversion

Question 13

A valid joint tenancy must have the four unities of:

Answer 13

title, time, possession, interest

Question 14

In which one of the following ways are joint tenancy and community property similar?

Answer 14

ownership shares are equal

Question 15

A property tax bill is an example of:

Answer 15

an involuntary lien

Question 16

An easement with only a servient tenement:

Answer 16

easement in gross

Question 17

If an owner files a proper Notice of Completion in the County Recorder’s office, unpaid subcontractors have how many days to file a lien?

Answer 17

30 days

Question 18

All of the following are true, except:

Answer 18

a suit for removal of an encroaching fence must be brought within 10 years from the date of the encroachment

Question 19

For a single person, under 65 years and not of low income, the homestead exemption is:

Answer 19

$75,000

Question 20

Once a valid homestead is recorded, which of the following terminates the homestead?:

Answer 20

selling the home

Question 21

Which of the following two terms do not go together?

Answer 21

encroachment - lien

Question 22

Which of the following best describes the requirements to acquire title by adverse possession?

Answer 22

color of title, continuous use, pay property taxes, hostile

Question 23

A judgment if considered to be what type of lien?

Answer 23

general

Question 24

Real estate agencies can be created several ways. The most common method is:

Answer 24

agreement

Question 25

With the permission of the seller, Broker A submits a listing to MLS inviting cooperating brokers to help find a buyer. This is an offer of:

Answer 25

subagency

Question 26

A broker has an agency agreement to represent just the buyer. This is an example of a:

Answer 26

single agency

Question 27

Which of the following is not correct?

Answer 27

real estate salespersons are able to contract directly in their own name as an agent with the seller

Question 28

A broker receives a deposit from a buyer with no instructions to hold the check uncashed pending the seller's acceptance of the offer. After the offer is accepted, the broker decides to put the check in a safe in the office for security purposes until the broker can get to the bank next week. The broker is:

Answer 28

guilty of commingling

Question 29

A real estate broker, in order to entice a person to buy, states that the property conforms to all building codes. The agent knows a room was added without a building permit. The agent is guilty of:

Answer 29

misrepresentation

Question 30

According to the real estate law, for supervising purposes, the relationship between a salesperson and a broker is:

Answer 30

employer-employee

Question 31

Receiving a commission from both the buyer and seller without full disclosure and approval is called:

Answer 31

divided agency

Question 32

Real estate commissions are:

Answer 32

negotiable

Question 33

Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:

Answer 33

when buyer receives proper communication of seller's acceptance

Question 34

The law that states real estate contracts must be in writing to be enforceable is called the statute of:

Answer 34

limitation

Question 35

All of the following are essential for a valid real estate contract, except:

Answer 35

parole evidence

Question 36

An executed contract is a contract that is:

Answer 36

completed

Question 37

An owner gives Ace Realty an exclusive right to sell listing for 90 days. Thirty days later the owner finds a buyer and sells the property without the services of Ace Realty. The:

Answer 37

owner does not owe a commission

Question 38

When the owner of a piece of leased property gives the lessee an option to buy, the option:

Answer 38

is not a purchase contract until exercised

Question 39

If the seller refuses to sell after signing a valid purchase contract and the buyer wants the property instead of money damages, the buyer will sue for:

Answer 39

specific performance

Question 40

A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:

Answer 40

owners were out of town and had left instructions the home was not to be shown to anyone during their absence

Question 41

Four separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:

Answer 41

given to each at the time they sign

Question 42

A home is sold for $180,000, making a 20% profit over cost. What was the cost?

Answer 42

$144,000

Question 43

To settle the estate of the deceased, a probate sale is held on a small rural cabin. The first court bid is $30,000, the next minimum bid must be for at least:

Answer 43

$32,000

Question 44

An investor wants to acquire income property that will generate a 10% cap rate. A 6 unit apartment complex rent for $950 per unit per month. Vacancies are 5% of gross rents and operating expenses total $20,500 per year. What is the maximum the investor should offer for this property? (rounded to nearest $1,000)

Answer 44

$445,000

Question 45

A real estate promissory note that reads "$100,000 principal payable interest only monthly at a rate of 10%" is what type of promissory note?

Answer 45

straight

Question 46

A real estate promissory note reads "$887.50 per month for 239 payments, then a final monthly payment of $3,011.19". This is an example of a/an:

Answer 46

balloon payment

Question 47

An enforceable due-on-sale clause is correctly called a/an:

Answer 47

alienation clause

Question 48

In a normal sale using both a grant deed and a trust deed (deed of trust) the buyer is the:

Answer 48

grantee and trustor

Question 49

A type of financing instrument where the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:

Answer 49

installment sales contract

Question 50

Under the Trustee's Sale procedure, after a Notice of Default has been recorded, a borrower has how long to reinstate by making up past payments, penalties, late charges, and trustee expenses?

Answer 50

5 days prior to trustee's sale date