Practive Exam 4 Flashcards
(122 cards)
1
Q
Of the seven members of the FREC, two must
a. be licensed attorneys
b. have never been licensed as real estate sales associates or brokers.
A
b. have never been licensed as real estate sales associates or brokers.
2
Q
- A sales associate decides to quit his brokerage and go to work for another broker.
Which applies?
a. The sales associate must be registered with FREC/DBPR under the new broker before working there.
b. The old broker must agree to the agreement.
A
a. The sales associate must be registered with FREC/DBPR under the new broker before working there.
3
Q
- The guarantee in which the seller provides assurance that he owns the property and, therefore, has the right to sell it is called the covenant of
a. encumbrances.
b. seisin.
A
b. seisin.
4
Q
- In the law of real property, the Statute of Frauds refers to the
a. legality of the object of the contract.
b. requirement that to be enforceable, contracts must be in writing.
A
b. requirement that to be enforceable, contracts must be in writing.
5
Q
- A borrower has a home loan and his deed states that he is the owner of the property.
The mortgage is an encumbrance and upon repayment of the loan, the cloud will be removed. Which theory of mortgage lending is this describing?
a. Lien theory
b. Title theory
A
a. Lien theory
6
Q
- A developer purchased 100 acres of land and is currently subdividing the property. He plans to make a new subdivision and should reserve within the mortgage a
a. partial release clause.
b. an escape clause.
A
a. partial release clause.
7
Q
- The capitalization rate is obtained by
a. dividing the net operating income by the sales price.
b. dividing the sales price by the net operating income.
A
a. dividing the net operating income by the sales price
8
Q
- Property management in the real estate business has gained popularity and importance due to
a. the growth in absentee ownership.
b. the growth in supply and demand of the market economy.
A
a. the growth in absentee ownership.
9
Q
What is called when a person has interest in real property and implies that the individual will receive legal title at a future date?
a. Abstract of title
b. Equitable title
A
b. Equitable title
10
Q
In a platted subdivision, the legal description most often used is
a. Metes and bounds
b. Lot and block
A
b. Lot and block
11
Q
Which of the following elements is not essential to make a contract valid?
a. Recording
b. Competent parties
A
a. Recording
12
Q
The Florida Constitutional Homestead Tax Exemption is up to $50,000 and is deducted from the
a. taxable value.
b. assessed value when calculating taxable value.
A
b. assessed value when calculating taxable value.
13
Q
The monetary policy in the United States is determined by
a. Federal Reserve System
b. The FREC
A
a. Federal Reserve System
14
Q
What is called when the plaintiff seeks to have the court force the party not in breach to perform according to the contract?
a. Specific performance
b. Liquidated damages
A
a. Specific performance
15
Q
With a Purchase Money Mortgage, (PMM) a mortgage is typically paid back to whom?
a. The seller
b. The buyer
A
a. The seller
16
Q
- Which of the following would most concern a lender when deciding to give a buyer a loan?
a. The buyer’s familial status
b. The buyer’s credit score
A
b. The buyer’s credit score
17
Q
A good indicator of the relationship between supply and demand in the residential market is
a. the market conditions and supply rate.
b. the vacancy rate.
A
the vacancy rate.
18
Q
Which of the following is deductible for a homeowner on their federal income taxes?
a. Mortgage payments and property taxes
b. Mortgage interest and property taxes
A
b. Mortgage interest and property taxes
19
Q
Highest and best use
A. is the most effective utilization economically.
b. is the most common appraisal method.
A
A. is the most effective utilization economically.
20
Q
A licensee may substitute attendance at one legal agenda session of the FREC for
a. six hours of continuing education.
b. three hours of continuing education.
A
b. three hours of continuing education.
21
Q
An unlicensed assistant can
a. hand out materials at an open house.
b. give opinions of what the value of the house is worth at an open house.
A
a. hand out materials at an open house.
22
Q
When must the no brokerage relationship notice be disclosed?
a. Before the agent transitions to a transaction broker
b. In writing before showing the property
A
b. In writing before showing the property
23
Q
Advertisements that fail to disclose the name of the brokerage firm
a. are false advertisements.
b. are blind advertisements.
A
b. are blind advertisements.
24
Q
When the principal a licensee is working with asks the licensee not to show his property to persons of a particular race
a. the licensee should follow his directions.
b. the licensee should withdraw and not work with the owner.
A
b. the licensee should withdraw and not work with the owner.
25
Physical components of real property do not include
a. timber rights.
b. subsurface rights.
a. timber rights.
26
The main purpose of the Florida Constitutional Homestead is
a. to provide housing for older persons in Florida.
b. to exempt property from a forced sale.
b. to exempt property from a forced sale.
27
27. What does an agent have to do that fails to complete the required 45-hour post license course before the expiration of his or her license if he or she wishes to continue in real estate?
a. Pay a fine and renew his or her license
b. Repeat the pre license course, pass the state exam, submit fingerprints, and submit an application for license
b. Repeat the pre license course, pass the state exam, submit fingerprints, and submit an application for license
28
What is the law that establishes the legal rights and responsibilities of real estate licensees is
a. F.S. 475
b. Chapter 61j2
a. F.S. 475
29
29. When a buyer is a real estate broker's principal, the sales associates in the broker's office are
a. also bound by the broker's agency obligations.
b. required to assume fiduciary duties to the buyer and the seller.
a. also bound by the broker's agency obligations.
30
A real estate broker and an owner developer are sisters, and they share an office.
Which applies?
a. A sales associate could be employed by both the owner developer and the broker because they share an office.
b. A sales associate must be registered with the DBPR and can only work for either the owner developer or the broker but not both.
b. A sales associate must be registered with the DBPR and can only work for either the owner developer or the broker but not both.
31
Lotteries
a. are legal and used sometimes in Florida for listings.
b. are an illegal practice and not used in Florida.
b. are an illegal practice and not used in Florida.
32
Advertising for a brokerage corporation must include the
a. registered name of the brokerage firm.
b. broker's license number.
a. registered name of the brokerage firm.
33
How long does a tenant have to dispute a claim made by a landlord, (in writing)?
a. 15 days
b. 30 days
a. 15 days
34
A joint tenant who wants to sell their share of a property
a. can sell their property to someone and that someone would also be joint tenant.
b. can sell their property to someone and that someone would be a tenant in common.
b. can sell their property to someone and that someone would be a tenant in common.
35
What is the law that states sellers are required to provide buyers with the HOA disclosure summary before the execution of a contract?
a. F.S. 720
b. F.S. 475
a. F.S. 720
36
36. Which of the following would not need to be a part of a metes and bounds legal description?
a. Reference to a monument, such as a tree or rock
b. The proper distances between corners of the property
b. The proper distances between corners of the property
37
Option contracts are
a. Unilateral
b. Bilateral
a. Unilateral
38
The cost of a mortgage stated as a yearly rate and includes such items as interest, mortgage insurance, and loan origination points is called the
a. adjustable-rate mortgage.
b. interest rate.
b. interest rate.
39
To raise the lender's yield on a mortgage by 1%, the approximate discount points required is
a. 8 points
b. 4 points
a. 8 points
40
40. The mortgage lien in a title theory state has been paid in full. The mortgage lien can be released through
a. a partial release clause.
b. the defeasance clause.
b. the defeasance clause.
41
Typically the documentary stamp tax on the deed is paid by the
a. seller.
b. buyer.
a. seller
42
Leverage is
a. the practice of assisting buyers in the sale of property.
b. the practice of using borrowed funds to finance the purchase of an asset.
b. the practice of using borrowed funds to finance the purchase of an asset.
43
What is it called when an investor may lose all or part of an investment?
a. leverage
b. risk
b. risk
44
44. If the subject property has four bedrooms and a comparable property has three bedrooms and the appraiser has determined a bedroom is worth $5,000, what adjustment should the appraiser make?
a. subtract $5,000 from the comparable
b. add $5,000 to the comparable
b. add $5,000 to the comparable
45
Increased traffic flow of a neighborhood would most likely cause
a. external obsolescence.
b. functional obsolescence.
a. external obsolescence.
46
46. A broker had an open listing and found the buyer for the property but then went into the hospital. If that buyer buys the house in his absence, does he have a case for receiving commission?
a. no
b. yes
B yes
47
If a broker advertises a property for sale and knows that the property has hazardous chemicals underneath it, the broker is
a. not required to disclose this to buyers.
b. always required to disclose this to buyers.
b. always required to disclose this to buyers.
48
A sales associate performs a broker's price opinion. Who is the bank that ordered the BPO required to pay?
a. the sales associate
b. the sales associate's broker
b. the sales associate's broker
49
An oral offer came into a broker, but a better written offer came in right after. Which applies?
a. The broker should submit both offers.
b. The broker can decide which offer to submit.
a. The broker should submit both offers.
50
A sales associate is a single agent for his seller and now a buyer wants to see the property that is for sale. Which applies?
a. The seller should sign a single agent disclosure.
b. The seller should sign a consent to transition to transaction broker disclosure.
b. The seller should sign a consent to transition to transaction broker disclosure.
51
What is the charge for taking original listings agreements?
a. Larceny
b. Breach of trust
a. Larceny
52
What is required to be on the purchase and sales contract regarding the title company if the title company is holding escrow?
a. Name, address, and phone number of the title company
b. Name, address, phone number, and email of the title company
A. Name, address, and phone number of the title company
53
What is it called if the brokerage firms name is not on an advertisement?
a. A false advertisement
b. A blind advertisement
b. A blind advertisement
54
How would you take title with your friend if you wanted your interest in the property you were buying to go to your heirs after your death?
a. Tenants in common
b. Joint tenants
a. Tenants in common
55
What is it called when you take personal property and attach it to real property?
a. A fixture
b. An attachment
a. A fixture
56
Tenancy by the entireties is for
a. anyone.
b. husband and wife.
b. husband and wife.
57
Which disclosure summary concerning ad valorem taxes must be presented to a prospective home buyer in Florida?
a. HOA disclosure summary
b. Property tax disclosure
b. Property tax disclosure
58
How can you remove an easement if you cannot remove it by normal means, (a quit claim deed)?
a. Decision of the court
b. Ordering a survey
a. Decision of the court
59
Which of the following liens would take priority?
a. Mechanic's lien dated October 2, 2021
b. Property tax lien dated October 3, 2021
b. Property tax lien dated October 3, 2021
60
An abstract of title is a
a. condensed history of title.
b. linking of past owners of a property.
a. condensed history of title.
61
When someone dies intestate, (no will) the state will appoint an individual to settle the deceased individual's estate. Which of the following deeds is used in this case?
a. A guardian's deed
b. A personal representative's deed
b. A personal representative's deed
62
62. How many sections are in a township?
a. 36
b. 640
a. 36
63
63. Purchase and sales contracts are bilateral because
a. both parties are obligated to perform.
b. they must be recorded.
a. both parties are obligated to perform.
64
Who pays the discount points on a VA loan?
a. The buyer
b. The seller
a. The buyer
65
65. Lenders in the mortgage market who supply mortgage funds directly to borrowers are known as
a. fannie mae.
b. primary lenders.
b. primary lenders.
66
How is the broker's commission typically shown on the closing disclosure?
A. Debit to seller, credit to buyer
B. Debit the seller only
B. Debit the seller only
67
Closing expenses, (transfer taxes) are typically
a. paid by the buyer and the seller and who pays which ones are determined by state law.
b. paid by the buyer and the seller and who pays which ones are determined by the contract.
b. paid by the buyer and the seller and who pays which ones are determined by the contract.
68
Can you call a CMA an appraisal?
a. No
b. Yes
A. No
69
A CMA is similar to an appraisal
a. because adjustments are made to the subject.
b. because adjustments are made to the comparables.
because adjustments are made to the comparables.
70
After completing the post licensing education during the initial license period, licensees must complete
a. 14 hours of continuing education during every two-year license period for active and inactive licensees.
b. 14 hours of continuing education during every two-year license period for active licensees only
a. 14 hours of continuing education during every two-year license period for active and inactive licensees.
71
Which type of depreciation would an appraiser most likely be concerned with when appraising a 15-year-old home in a rural community?
a. external obsolescence
b. physical depreciation
b. physical depreciation
72
The purpose of Fannie Mae is to
a. purchase residential real estate loans in order to keep a uniform flow of funds in the mortgage market.
b. provide leverage to homeowners.
a. purchase residential real estate loans in order to keep a uniform flow of funds in the mortgage market.
73
What is FHA insurance for?
a. FHA insurance is to protect the lender in the event of the destruction of the property.
b. FHA insurance is intended to reimburse private lenders when an FHA-insured loan is determined to be uncollectable.
b. FHA insurance is intended to reimburse private lenders when an FHA-insured loan is determined to be uncollectable.
74
74. Do adjustable-rate mortgages have a pre-payment penalty?
a. No
b. Yes
a. No
75
What requirement applies regarding dwellings built prior to 1978?
a. Sellers and lessors are not required to disclose the presence of known lead-based paint in residential dwellings.
b. Sale contracts and leases must include specific lead-based paint warning and disclosure language.
b. Sale contracts and leases must include specific lead-based paint warning and disclosure language.
76
76. A clause found in a deed limiting the size of a dwelling to be constructed on a lot to a minimum of 2,000 square feet would be an example of a
a. restrictive covenant.
b. deed restriction.
b. deed restriction.
77
Two close friends own a nursery as joint tenants with right of survivorship. One owner died unexpectedly. Who owns the nursery?
a. The surviving friend
b. The surviving friend and the deceased friend's heirs.
a. The surviving friend
78
How is the intangible tax typically noted on the Closing Disclosure Statement?
a. Debit to the seller, credit to the buyer
b. Debit buyer only
b. Debit buyer only
79
79. A broker provided an up to date and accurate rental list for a $350.00 fee. The potential tenant was unable to obtain a rental and requested a refund. Which applies?
a. If the potential tenant makes the request within 30 days, the licensee would be required to provide a refund of $262.50.
b. If the potential tenant makes the request within 30 days, the licensee would be required to provide a full refund of the $350.00.
a. If the potential tenant makes the request within 30 days, the licensee would be required to provide a refund of $262.50.
80
80. The Florida Residential Landlord and Tenant Act requires landlords to account for advance rents and security deposits in one of three ways. Which of the following is not one of the choices the landlord has regarding advance rents and security deposits?
a. A landlord can hold the money in a separate non-interest-bearing Florida bank account for the benefit of the tenant.
b. A landlord can hold the money in any of the 50 states in a separate non-interest-bearing account for the benefit of the tenant.
b. A landlord can hold the money in any of the 50 states in a separate non-interest-bearing account for the benefit of the tenant.
81
81. A broker was convicted for publishing false or misleading information. Which applies?
a. The broker can be charged by a civil court, criminal court, but not the FREC.
b. The broker can be charged by civil court, criminal court, and the FREC.
b. The broker can be charged by civil court, criminal court, and the FREC.
82
82. If someone is appointed as a personal representative of a deceased person's estate, do they need a real estate license to assist in the sale?
a. Yes
b. No
b. No
83
A broker receives a listing on a home and his friend wants to submit an offer. Can the broker tell his friend that the seller is going through a divorce?
a. No
b. Yes
a. No
84
Which of the following random statements is false?
a. A group license is sometimes issued to a sales associate or broker associate who are registered under an owner-developer. Multiple licenses is what a broker would have if they owned more than one brokerage.
b. The additional tax exemption for a blind person who homestead is $1,000.
b. The additional tax exemption for a blind person who homestead is $1,000.
85
Which of the following random statements is false?
a. A tax deed is what is auctioned in the event that a property owner does not pay his or her taxes.
b. Static risk is risk that can be offset with insurance. Lotteries are a violation in Florida and not permitted.
a. A tax deed is what is auctioned in the event that a property owner does not pay his or her taxes.
86
A building is 4 stories high and each floor is 100x50. I want to put bins in all the space I can. I can't use 20% of each floor. The bins are 10x10. How many bins can I put in this building?
a. 160
b. 240
a. 160
87
What is the net operating income of a property that has a value of $495,000, operating expenses of $25,000, and a capitalization rate of 10%?
a. $49,500
b. $25,000
A. $49,500
RxV
income_
rate X value 20% x $495,000
$495,000 (value) X .10 (rate) = $49,500 (income)
88
A man can borrow $78,000 to purchase a house, and this is 2.5 times his salary. What is his annual salary?
a. $50,000
b. $31,200
b. $31,200
$78,000 (income) / 2.5 (how much more) = $31,200 (annual salary)
89
A county has a property tax rate of 12.18 mills. The homestead exemption of $25,000 is available to homestead property. If the property taxes are $495,000 and the owner does qualify for the exemption, how much will the property taxes be?
a. $5,724.60
b. $6,582.23
a. $5,724.60
$495,000 (property taxes) - $25,000 (homestead exemption) = $470,000 (taxable value)
$470,000 (taxable value) x .01218 (12.18=.01218 mills move the decimal point 3 places to the left) = $5,724.60
(property tax cost)
90
90. A sales associate earns 70% of a 6% commission on a sale of 20 acres at $5,000 per acre. How much is the commission earned by the sales associate?
A. $5,200
B. $4,200
#90) B. $4,200
$5,000 (per acre) x 20 (number acres) = $100,000 (total sales price)
$100,000 x .06 (6% commission) = $6,000 (commission)
$6,000 x .70 (70% sales associate keeps) = $4,200 (commission)
91
If a lot frontage is 150 feet, street paving costs are $25.00 per running foot, and the city will pay 40% of the paving costs, what will be the assessment to the property owner for their side of the street?
a. $750
b. $1,125
b. $1,125
150 (front feet of property) x $25 (cost per foot) = $3,750 (total cost)
$3,750 x .60 (60% property owner pays) = $2,250
$2,250 / 2 = $1,125 (cost to property owner) (always divide by 2 at the end because the property owner only
pays half of the street paving cost. The neighbor pays the other half).
92
A developer owns 100 acres in charlotte county, FL and wants to create 20 lots with each lot being 21,780 square feet each. How many acres would he need to allocate for this project?
A. 20 acres
B. 10 acres
B 10 acres
93
93. The purchase price of the property is $200,000. The binder deposit was $25,000, the cash at closing for the buyer is $11,000, the first mortgage amount that the buyer is acquiring is for $25,500. The buyer is giving the seller a purchase money mortgage that the seller is taking back. How much is the purchase money mortgage amount?
a. $130,000
b. $138,500
b. $138,500
$200,000 (sales price) - $25,000 (binder deposit) - $11,000 (cash at closing) - $25,500 (mortgage) =$138,000
(purchase money mortgage)
94
94. A tract of land measures 660 feet along the highway and contains 20 acres. How deep is the tract?
a. 1,320
b. 1,258
A. 1,320
43,560 (square feet per acre) x 20 (acres) = 871,200 (total square feet)
871,200/660 (feet along highway) = 1,320 depth
95
A property which measures 120' X 300' sold for $38,500. What was the price per square foot?
a. $1.07
b. $2.00
a. $1.07
$38,500 (sales price)/36,000 (lot size..120 x 300=36,000) = $1.069 (round to $1.07)
$1.07 price per square foot
96
How many acres and square feet are in the SW1/4 of the NE1/4 of the E1/4 of the W1/4 and the N1/4 of the SW1/4 of the E1/4 of the W1/4 of section 9?
a. 2.5 acres; 108,900 square feet
b. 5 acres; 217,800 square feet
b. 5 acres; 217,800 square feet
97
Calculate all applicable documentary stamp taxes and intangible taxes for property located in Sarasota county:
Purchase price
Earnest money deposit
Recorded first mortgage (assumed)
Second mortgage (new)
Cash at closing
$550,000
$45,550
$157,000
$200,499
$15,900
a. $5,502.24
b. $6,250.35
a. $5,502.24
#97) A
Documentary stamp on the deed (sales price)
$550,000/100 = 5,500 x .7 = $3,850
Documentary stamp on the note (all mortgages)
$157,000 (1st mortgage) + $200,499 (second/new mortgage) = $357,499 (total mortgages)
$357,499/100 = $3,574.99 (round up to $3,575)
$3,575 x .35 = $1,251.25
Intangible taxes (new mortgage only)
$200,499 x .002 = $400.99
Add those three together $3,850 + $1,251.25 + $400.99 = $5,502.24
98
While working for a broker, a sales associate acquired a listing for $889,000 at a 6% commission rate. A second sales associate, who works for another brokerage office, found the buyer for the property. The listing and selling brokers agree to a 50-50 split between the two offices. The property sold for $900,000. The selling broker kept 35% of the commission received by the selling office. How much did the selling office's sales associate receive?
а. $16,550
b. $17,550
b. $17,550
$900,000 (sales price) x .06 (6% commission) = $54,000 (total commission earned)
$54,000/2 (two brokers) = $27,000 (split commission)
$27,000 x .65 (selling associate share of commission) = $17,550
99
The total property values in the city total $5,495,000. The government building value totals $450,000. The church value totals $125,000. The total tax exemptions for homeowners total $950,000. What is the tax revenue of the city if the overall tax rate is 9.2
a. $36,524
b. $48,500
a. $36,524
$5,495,000 (total property values) - $450,000 (government buildings are immune from taxes) - $125,000
(churches are exempt from taxes) - $950,000 (homeowner tax exemptions) = $3,970,000 (total taxable value
in city)
$3,970,000 X .0092 (tax rate 9.2 mills-move the decimal 3 places to the left) = $36, 524
100
100. If the subject property has three bedrooms and the comparable property has four bedrooms, and a bedroom is worth $10,000, the correct adjustment is to
a. add to the comparable.
b. subtract from the comparable.
b. subtract from the comparable.
101
Which of the following describes leverage?
a. Leverage is when an investor uses his equity to finance an investment
b. Leverage is the use of borrowed funds to purchase assets or to finance an investment.
b. Leverage is the use of borrowed funds to purchase assets or to finance an investment.
102
Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interest in the event that the borrower sells or transfers any interest in the property without the lenders prior written consent?
a. Due-on-sale Clause
b. Escape clause
a. Due on sale clause
103
Two close friends own a daycare center as joint tenants with right of survivorship. One owner passed away. Who owns the daycare center?
A. If the deceased owner has minor children, the children will receive a remainder estate for the deceased owner's interest in the daycare center, and the surviving owner will take a life estate.
B. The surviving owner becomes sole owner of the daycare center by operation of law.
The surviving owner becomes sole owner of the daycare center by operation of law.
104
The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom, two and one-half-bath home. An appraiser has determined that the extra half bath is worth about $2,200. What adjustment should the appraiser make?
a. Subtract $2,200 from the estimated value of the subject property.
b. Subtract $2,200 from the comparable's transaction price.
b. Subtract $2,200 from the comparable's transaction price.
105
How is the intangible tax typically noted on the closing disclosure statement?
Buyer debit only
106
Two brothers have decided to purchase investment property and not sure how they want to take title. The brother's wives have looked into the options and have decided that in the event that one of the brothers dies, his wife would like to receive title. With this information, how should the brothers take title?
a. Tenancy in common
b. Joint tenancy
a. Tenancy in common
107
A father intended to leave his house to his son and executed a general warranty deed to the property and gave it to his son. Shortly after, the father died, before the deed could be recorded. Which applies?
b. The son has legal title to the house, but only after providing constructive notice, (recording the deed).
c. The son has title to the property because title to the property was conveyed when the father delivered the deed to his son and his son voluntarily accepted it.
c. The son has title to the property because title to the property was conveyed when the father delivered the deed to his son and his son voluntarily accepted it.
108
Which of the following clauses or covenants in a deed states that the grantor owns the property and has the right to convey it?
a. Covenant of seisin
b. Covenant against encumbrances
c. Habendum clause
d. Covenant of further assurances
a. Covenant of seisin
109
Amy, Todd, Frank, and Francine all co-own a beach house on St. Petersburg beach.
Frank died, and his co-ownership of the property passed, according to his will, to his son.
How do these parties own the property?
a. Joint tenancy with right of survivorship
b. Tenants by the entireties
c. Tenants in common
d. Estate for years
c. Tenants in common
110
25. Which statement is false concerning the primary mortgage market and the secondary mortgage market?
c. The primary mortgage market consists of lenders that originate new mortgage loans for borrowers.
d. The primary objective of the secondary mortgage market is to create new loans for borrowers to increase the money supply for lenders.
d. The primary objective of the secondary mortgage market is to create new loans for borrowers to increase the money supply for lenders.
111
When a broker's license is suspended or revoked, which does not apply?
c. The sales associates registered under the disciplined broker will automatically have their license status changed to null and void.
d. The sales associates registered under the disciplined broker will automatically have their license status changed to involuntary inactive.
c. The sales associates registered under the disciplined broker will automatically have their license status changed to null and void.
112
Which of the following is the economic indicator that adjusts in an adjustable rate mortgage?
C. The index
D. The valuable table
The index
113
Which of the following types of notice is also called legal notice and is achieved by recording documents in the public records?
a. Constructive notice
b. Actual notice
A constructive notice
114
30. In which of the following mortgage lending theories does the borrower not retain title during the loan period?
a. Lien theory
b. Title theory
Title theory
115
32. What is not true of an abstract of title?
a. An abstract of title is a complete search of the recorded documents concerning a parcel of real property.
b. An abstract of title is a complete successive record of a property's ownership.
b. An abstract of title is a complete successive record of a property's ownership.
116
Concerning the Statute of Frauds, which does not apply?
a. Deeds, mortgages, promissory notes, purchase and sales contracts, option contracts, lease agreements for longer than one year, listing agreements for longer than one year, and buyer representation agreements for a term longer than one year must be in writing per the Statute of Frauds.
b. The Statute of Frauds states that all contracts must be in writing to be enforceable.
b. The Statute of Frauds states that all contracts must be in writing to be enforceable.
117
Which of these describes of a non-freehold estate that includes a definite specified amount of time?
c. Life estate
d. Estate for years
Estate for years
118
Which of the following is true concerning taking listing contracts when a licensee leaves a brokerage?
a. If a sales associate takes original listing contracts, he could be charged with breach of trust.
If a sales associate takes copies of listing contracts, he could be charged with larceny.
d. If a sales associate takes original listing contracts, he could be charged with larceny. If a sales associate takes copies of listing contracts, he could be charged with breach of trust.
d. If a sales associate takes original listing contracts, he could be charged with larceny. If a sales associate takes copies of listing contracts, he could be charged with breach of trust.
119
A residential zone requires at least 7,500 square feet per lot. The developer is reserving 25 percent of the land for streets, sidewalks, and a community center. The tract of land for the development consists of 175 acres. How many residential lots are available for development?
a. 254
b. 762
C. 813
d. 1,106
B 762
120
2 points
= .25
121
48. A property sold for $450,000. The sales associate that listed the house is entitled to 70% of all commissions earned. If the sales associate's check was $22,050, what was the property listed at?
a. 6% b. 7% c. 8% d. 7.5%
B. 7%
122
If a lot is 250' x 300', street paving costs are $20.00 per running foot, and the city will pay 40% of the paving costs, what will be the assessment to the property owner?
a. $1,500
b. $1,200
c. $1,110
d. $2,540
a. $1,500
