Practices

Question 0

After the close of escrow, the buyer and seller decide to cancel the transaction. What action needs to be taken

Answer 0

A new deed must be prepared and recorded from buyer to seller

Question 1

RESPA does not cover

Answer 1

Loan assumptions

Question 2

When land is purchased with a mortgage, the buyer may have trouble obtaining a construction loan without a

Answer 2

Subordination clause

Question 3

An owner knows a broker is showing the owners property without authority, he owner could be liable for what?

Answer 3

Certain acts of the licensee

Question 4

Rate of return relates to

Answer 4

Cap rate

Question 5

What basis is used to charge taxes in a cooperative

Answer 5

Pro-rata share

Question 6

What is not exempt under federal fair housing

Answer 6

A “for sale by owner” selling a five-plex

Question 7

Four people make an offer on residential investment property.
They give broker 40,000 earnest money deposit, he steals the money.
If payment is made from recovery fund, what is the max amount the parties may receive.

Answer 7

30,000

Question 8

In deed, what is the clause called that deals with easements and liens

Answer 8

Limitation and restriction

Question 9

Which of the following would not appear in a listing agreement

Answer 9

Houses of worship

Question 10

If a parcel of real estate is near a toxic waste site, what is the agent obligated to do

Answer 10

Disclose the fact

Question 11

When mortgage banker borrows on existing loans held by banker, what is this called

Answer 11

Warehousing

Question 12

A salesperson enters into a contract with a buyer and seller and opens escrow.

Before Coe, his brokers real estate license is suspended. What is status of salespersons commission

Answer 12

Salesperson may receive a commission

Question 13

What is not a charge to seller on settlement sheet

Answer 13

Property insurance

Question 14

What is true if a property has a first and second lien in default

Answer 14

Second would terminate if the first had successful judicial foreclosure

Question 15

When a person donates private land for public use, this is called

Answer 15

Dedication

Question 16

What does a defeasance clause state

Answer 16

Lenders claim has been cancelled

Question 17

A broker who acts as a property manager is what type of agent

Answer 17

General

Question 18

Families with children may be denied occupancy of rental units if all the units are reserved exclusively for people_____ and older

Answer 18

62 years

Question 19

What method best defines

Present worth of future income

Answer 19

Income approach

Question 20

What form of real estate investing falls under federal securities laws.

Answer 20

REIT

Question 21

How would abandoned property revert to state

Answer 21

Escheat

Question 22

RESPA provides for all, except?

Answer 22

A limit on loan points

Question 23

What does not violate RESPA.

Answer 23

Giving the buyer the names of lenders

Question 24

A deed was given to two brothers but it didn't indicate how title was taken. This form of ownership would be

Answer 24

Tenancy in common

Question 25

When land is offered intestate it would be regulated by the office of interstate land sales registration. What number of lots must be offered for the regulation to take place

Answer 25

25 or more

Question 26

What is it called when a structure is adding value to the land

Answer 26

Economic life

Question 27

What is not a security instrument

Answer 27

A note

Question 28

What is personal property

Answer 28

Lease

Question 29

When an exchange of real property takes place, which of the following triggers a taxable event

Answer 29

Assuming a loan of lesser value

Question 30

Seller tells broker they would like to sell home furnished. Agent should not do what

Answer 30

Add personal property to deed

Question 31

Economic life of building is

Answer 31

Period of time it remains profitable to operate

Question 32

What is weakest type of will

Answer 32

Nuncupative

Question 33

An exclusive agency listing agreement

Answer 33

Allows seller to sell and not pay a commission

Question 34

A home is located next to a factory. This is considered

Answer 34

Economic depreciation

Question 35

A broker runs ad for a sales person to work certain hours and holidays. Salesperson is most likely considered an______

Answer 35

Employee

Question 36

Joe gave Larry permission to cross over his land for ten years in order to get to the lake, Larry has what from joe?

Answer 36

License

Question 37

What is it called when a structure is adding value to the land.

Answer 37

Economic life

Question 38

What is a person called who recieves real estate in a will

Answer 38

Devisee

Question 39

When a borrower take a variable rate mortgage, what is true regarding the margin

Answer 39

It remains constant for the life of the loan

Question 40

What can be allowed for recording easements

Answer 40

Placing an encumbrance on the property

Question 41

What is it called when a voluntary transfer of real estate takes place according to a will

Answer 41

Alienation

Question 42

What's it called when party is granted a property upon the condition that a certain use continue in the future

Answer 42

Defeasable fee

Question 43

How is title insurance paid

Answer 43

Once at the beginning

Question 44

What to mortgages not contain

Answer 44

A subrogation clause

Question 45

In order to determine cap rate.

Answer 45

Income divided by value

Question 46

What is not exempt under the federal fair housing law

Answer 46

A for sale by owner selling a five-plex