Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Test 1 > Flashcards

Test 1 Flashcards

1
Q

Legally and technically, property is defines as ?

A

a. Freehold estates
b. Things which buyers and sellers own
(c) rights or interests which a person has in the thing owned
d. Only personal property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which best defines a fee simple estate

A

a. Title in the owner without limitations
b. Estate for years
c. A life estate
(d) The most interest that one can hold in land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

David gave a grand deed to john transferring title to the house. Title is subject to a condition stating title will be forfeited if alcohol is sold on property. What type of estate?

A

a. A fee simple absolute
(b) a fee simple defeasible
c. an estate in forfeiture
d. a less than freehold estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When Carson conveys to Gimball a portion of his fee estate for a term less than his own, Carson interest would best be identified as

A

a. leasehold
b. fee defeasible
c. vested severance
(d) Reversion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If a man leased a store for only six months, he would have an

A

a. Estate from period to period
(b) estate for years
c. estate at will
d. estate at sufferance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Under a valid assignment of a lease, the assignee purchases the leasehold interest and becomes a

A

a. landlord
b. guarantor
c. sublessee
(d) tenant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

which of the following would not be classified as a real property

A

a. appurtenant easement
b. watercourse
c. unextracted minerals
(d) leasehold estates in residential properties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

unless otherwise spefified, the rights to minerals which lie beneath the surface of land

A

(a)are automatically transfered with the sale of the real property
b.cannot be leased
care kept by the original owner
d. cannot be conveyed apart

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which of the following would be defined as fixture in the law

A

a. something that is made part of a chattel real
b. something referred to by actions but not referred to in the sales contact
(c) something incorporated into the land
d. something used in an extraordinary way with the land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

As used in real property law, which of the following is most nearly correct as a meaning for the word “tenancy”.

A

a. the landlord-tenant relationship
b. obstinacy of a holdover tenant
(c) the mode or method of holding to real property by a lessee or owner
d. none of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

If five people own property as joint tenant

A

a. they need not own equal interest in the property
(b) there is still only one title to the whole property
c. owner dies, his heirs become tenants in common with the co owners
d. each co-owner has separate legal title to his undivided interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

When real property is held by husband and wife as community property an agreement to sell that property which has been signed by only one spouse would be considered to be:

A

a. illegal
(b) unenforceable
c. bidning
d. violation of the statue of frauds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

to alienate title to the property, one:

A

a. encumbers the title
b. clouds the title
c. records a homestead
(d) conveys title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

the primary purpose of city and county building codes is to establish

A

a. min square footage dimensions and occupancy limits for commercial
(b) min standards for public health, safety, moral, general welfare
c. the prevailing wage provisions which must be observed by contractors doing business with the goverment
d. all of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

which of the following rights of ownership in real property do individuals normally not have

A

a. severance rights
(b) eminent domain rights
c. riparian rights
d. reliction rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

a deed would be considered void in which of the following circumstances

A

a. the grantee is not specifically named in the deed
b. the name of the grantor is spelled different in the body of the deed
(c) the grantee is a fictitious person
d. the grantee uses a name which is not his correct legal name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

on september 30, 1983 daniels offered to buy barnes home. The offer was accepted and escrow opened. barnes had purchsed the home in 1978, by FHA, which currently still making payments. a preliminary title report date 9-30-1983 will

A

a. include exactly the same information as a future standard policy of title insurance
(b) show the particulars of a deed of trust with barnes as trustor
c. bind

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Of the following types of deeds, which one would contain no covenant or warranties, expressed or implied

A

a. a wild deed
(b) a quitlcaim deed
c. A bargain and sale deed
d. A grant deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Which of the following statements concerning encumbrances is correct

A

(a) It is a common practice for buyers to accept indeed on previously encumbered property
b. Overdue federal income taxes may become a lien but they are never an encumbrance
c. All encumbrances or liens, but not all liens or encumbrances
d. A specific lien is never a voluntary lien

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A charge imposed upon the specific real property by which it is made security for the performance of an act the fires which of the following

A

a. encumbrance
b. quitclaim deed
(c) lien
d. covenant not to impose encumbrances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The beneficiary of a second trustee sold his interest in the property for less than the unpaid balance of the note.This action is commonly described as

A

a. Leveraging
b. Liquidating
(c) Discounting
d. Seven-game

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

When the required payments are real estate loan are insufficient to pay the interest due, the results is

A

a. Increased principal payments
b. A reduced term of the loan
(c) negative amortization
d. Greater down payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A note on which only to interest is paid during its term is called

A

(a) straight note
b. Amortized note
c. An installment note
d. void

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

a baloon loan could also be described as a

A

a.Non-assumable loan
B. Due on sale loan
(C)Partially amortized loan
D. Fully amortized loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

An owner of a parcel of real property gave his name for a deed conveying an easement for ingress and egress. The easement was not specifically located in the deed. The neighbors right to use the easement is

A

(a)Enforceable, because the location of an easement need not be specified
B. Enforceable only if the easement is an easement in gross
C. Unenforceable due to the lack of a specific location
D. Unenforceable, because easement are created by written agreements, never by deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

An interest in real property can be acquired through “adverse possession” or by prescription. The interest acquired by prescription is

A

(A) The right to use the land of another
B. An equitable title
C. A legal title
D. A private grant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Deed restrictions are appropriately classified as

A

A. General liens
b. Constructive liens
(C) Encumbrances
D. All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

The owner of a single lot is trying to show that exceptional circumstances concerning the intended use of the property are applicable to this property. The owner is also trying to show that the exception is not detrimental to the public. The owner would probably petition to planning commission for

A

A. Redevelopment
(B) Varianc
C. Building permit
D. Rezoning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Mr. Gardner purchased his home, he discovered, by survey, that his neighbor’s garage was 3 feet over on his newly acquired property. This disturbed him greatly. The broker and seller were not aware of the encroachment. For remedy, if a friendly settlement cannot be reached, you should bring civil suit against

A

A. The broker for failure to disclose the encroachment
(B) His neighbor
C. The Real Estate Commission
D. The title company, for failure to show the encumbrance on the standard form title report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

When using a purchase money trust deed, the trustor

A

A. Receives a note for the amount that is borrowed
B. Lens the money
C. Holds the promissory note
(D) Signs the trust deed which is used as security for the loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

A trustee has legally begun the process to sell property secured by a trust deed. After the notice of default is recorded, the trustee must wait at least three months before

A

A. The foreclosure is final
b. Issuing the inconvenience deed
(C). Publishing the notice of sale
D. Convening title to the beneficiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

If the parties to the document have no other agreement, Which of the following trustees would normally have priorities

A

a. The one which is executed and delivered first
b. The one which is executed first
C. A trust deed securing the payment of construction loan
(D). The one record at first

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Under California law, A trust deed

A

a. Transfers equitable title to the beneficiary
(B) Encumbers the real property designated and indeed of trust
C. Designates only two parties to the agreement; the Trester and the trustee
d. automatically reconvey is the property to the trust or when the loan has been paid off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Van Holden borrowed money from Robertson and give the lender of trustees on six separate parcels of previously unencumbered real property that he owned. In such a circumstance, the trust deed would be regarded as

A

A. An all-inclusive deed of trust
B. A purchase money deed of trust
C. A subordinated deed of trust
(D) A blanket deed of trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

In the field of real estate, a prepayment penalty is sometimes

A

A. required from a trust or who makes advance payments is on his home loan
B. Collected from borrower was late in his payment
C. Charged environment he applies for home loan
D. Written into a trust deed for the protection of the truster

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

A subordination clause in the trusty benefits

A

a.. The beneficiary
(B) The trustor
C. The trustee
D. none of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

One document which requires verification and recording for its validity is a

A

a. trust deed
b. notice of default
c. judgment affecting real property
(d) mechanic’s lien

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Which of the following would be true about a lis pendens

A

a. it can only removed by a court order
b. it can be recorded no matter what the type of lawsuit is
(c) it may affect title to real property based on the results of the lawsuit
d. none of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

When the public records have been examined in order to determine the chain of title to parcel of real property, a written summary of the chain of title is known as

A

.(a) An abstract of title
B. An extended coverage title insurance policy
C. An affidavit of title
D. None of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

An on-site inspection of the property, when title insurance is being issued, with the least likely that this issuance of

A

a.t. An extended coverage policy on rule property
B. And extended coverage policy on the home
(C) A standard policy covering the home
D. And ALTA policy covering the home

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

The protection which is given by an ALTA policy title insurance

A

A. Covers easement which are created during the term of the policy
(B) Is limited to the standard condition in ownership of title as of the date of policy
C. Protects to insured against unknown releases who occupy the property
D. Includes encroachments upon the property which occur after the effective date of policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Broker Bob who has unrestricted license, negotiated the sale of property, and in the process, defrauded about. The buyer obtain the final judgment against a broker upon the ground of fraud in a civil suit. The real estate Commissioner

A

A. Can suspend the broker’s license until a hearing is held
(B) Can hold a hearing but cannot suspend or revoke the license until after the hearing
C. Could suspend the license of the broker when he receives a copy of the final judgment
d.must wait to take action until the buyer files a formal complaint

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

The commissioners regulations require that there be a written employment contract between the broker in each salesperson employed by the broker. Such employment agreements must

A

A. Be By both parties for a period of three years from the date of agreement
(B) Be presented to the Department of real estate when subpoenaed
C. be ratained by both parties for three years fro the termination of the agreement
d. be notarized and recorded at the county recorder office.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Which of the following represents a gross misrepresentation by an agent

A

a. his representation is an obvious falsehood
b. his representation is made with a knowledge of the falsehood.
c. his representation caused the aggrieved party to enter into the contract
(d) all of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

a licensed real estate salesperson placed a “blind ad” In a local newspaper. A “blind” does not properly

A

A. Give the address of the property
(b)identified the broker
C.identify the seller
D.give the selling price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Ethical practices of real estate licensee most merely means

A

A. Knowledge and respect for the law
B. Efficient and effective business practices
(C) The licensee’s honesty and fairness in dealing with the public, clients, associates and customers
D. Being held in high esteem by peers in the public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

When budgeting for a real estate office, the phrase “company dollar” means

A

A. The money required to establish an office in London for a given period of time;
B. The income of an office after all expenses are subtracted
C. The income of an office after all commissions are subtracted
D. None of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

The real estate commissioner would not permit which of the following mortgage loan advsertisements

A

(a) call our toll free number 1800-for-a-loan
b. Income, equity and credit must be verfied
C.We loan up to 75% of market value based on our staff appraiser’s report
d. First trust deeds available - 10% per annum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Which of the following state agencies would receive complaints concerning fair housing laws?

A

a. Department of real estate
(b) department of fair employment and housing
c. department of community development
d. None of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

In which of the following years Did the US Supreme Court prohibited all racial discrimination in real property is sold or rented

A

a. 1962
(b) 1968
c. 1974
d. 1982

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

In 1921, restrictions which limited the conveyance or the lease of property to persons of the Caucasian race were imposed on the subdivision. The restrictions are to expire in 2019. Presently, these restrictions are

A

A. Enforceable
(B) Unenforceable even if a majority of the homeowners want them
C. Enforceable, if the buyer agrees
D. Valid, unless all property owners agreed to eliminate them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

A broker presented an offer to sell or which meant the terms of the listing. The offer was from a financially qualified black person. Later, as salesperson presented the seller and offer a lower price from a white prospects. The seller do not accept your offer, but instead sold the property to a neighbor through the same salesperson. The neighbor wanted to buy the property sold as to prevent a minority person moving into the area. Which of these parties is not in violation of fair housing laws

A

a. seller
b. neighbor
(c) white prospects
d. salesperson

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

When the real estate market changes from a buyers market to seller’s market, which of the following results could naturally be expected

A

A. Prices would probably drop because of the increased supply and reduce demand
B. Construction activity in new subdivisions would decline
C. Prices would be unaffected, since every Parcell is unique
(D) Prices would rise because of the increased demand and lighting supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Carlson borrowed 35,000 to finance the purchase of his home. The trend of gradual economic inflation will affect the outstanding balance of the loan to the

A

(a). Benefit of the trustor
B. Benefit of the trustee
C. Benefit of the beneficiary
D. Disadvantage of beneficiary and the trustor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

When Crane sold his house to Thompson, it was necessary for cream to take back a note secured by second trust deed in order to consummate the transaction. Which of the following would probably be the reason for this

A

a. The note on the second trust deed has a low discount rate
B. The initial financing was VA guaranteed
(C) The current money market is “tight”
D. The deal was being conventionally financed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Lenders know that the lower the loan to value ratio, the higher the

A

A. Appraised value
B. Probability of default
(C) Equity
D. Amount loaned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Financial institutions which specialize in making home loans obtain most of the funds from

A

(a)Individual savings
B. Business savings
C. Government loans
D. The federal national mortgage Association

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Deregulation of the financial institutions most nearly means

A

A. There is now no government control of financial institutions
(b) There is no limit on the interest rate financial institutions can pay on deposits
C. Financial institutions can no longer respond to market conditions
d.Examination and enforcement attitudes are more relaxed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Most junior loans that are negotiated today are secured from

A

(A) Private lenders
B. Commercial banks
C. Savings and Loan associations
D. Insurance companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Commercial banks consider liquidity and marketability of loans to be paramount importance when you make mortgage investments secured by real property. Such banks are referring to the

A

(a) Activities of a secondary mortgage markets
B. Superiority of short-term loans over long-term loans
C. Reseller of homes
D. Effects of the security offered by the FDIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

When processing a real estate loan application, a lender would correlate characteristics of borrower, loan, and property to make

A

A. A property appraisal
(b) A loan commitment
C. A credit rating
D. A liability statement

62
Q

Most lenders, when you are deciding whether or not to make a proposal real estate loan, try to minimize the

A

A. Overall net yield
B. Loan-to-value ratio
(c) chance of a substandard loan becoming a part of the portfolio
D. The borrower difficulties which may arise in the future, such as a divorce or death

63
Q

Which of the following closing costs would be classified as a recurring cost

A

A. Recording fees
B. Title insurance premiums
C. Escrow fees
(D) Impound account items

64
Q

In computing the unspecified maturity date on the construction loan, the time for repayment of the loan starts running

A

A. From the date of first disbursement of funds
(B) From the date of the note
C. When money is placed in escrow
D. According to the terms of the deposit receipt

65
Q

The real estate financing instrument which transfers equitable title to real property, but retains legal title in the seller, is called

A

A. A security agreement
B. A mortgage
(C) Real property conditional installment sales contract
D. A trust deed

66
Q

Smit sold a home to Jones on the land contract and recorded a contract. Jones made a $25 down payment and after the sale, made a few of the required monthly payments. One night Jones moved out and abandon the house. Which of the following is true?

A

a. A buyer who later bought the property for cash would have no concern about Jones
B. A deficiency judgment could be obtained by Jones
(C). There is a cloud on the title
D. The title is very marketable

67
Q

Thompson purchased a home in which he expects to live. As a part of the purchase price, he contracted for a first mortgage with a federal savings and loan association. Under the present provisions of the federal truth in lending act, he may

A

a. Have the right to cancel because the mortgage creates a lien against his property
B. Not canceled because of federal savings and loan is exempt from the act
C. Canceled because all of the real estate loans are entitled to certain cancellation rights under the act
(D) Not canceled because a mortgage to finance the purchase of this phone carries no right to cancel

68
Q

If an advertisement displaced in a newspaper advertising a house for sale, and only to annual percentage rate is stated

A

A. Total finance charge must be included
B. Number of payments must be included
C. The amount of the down payment must be included
(D) Additional disclosures are not required

69
Q

The national housing act which was passed in 1934 basically insures loans. It also has some secondary results. Which of the following is not one of the secondary results

A

A. A method of valuing property and reading risks
B. Investments in mortgages on a national basis
(C) Maximum construction standards
D. The planning of subdivisions

70
Q

Which of the following would be most likely to pay a premium for mutual mortgage insurance

A

D. A homeowner who assumed FHA loan

71
Q

Which of the following will not be considered a demand source for mortgage money

A

B. Federal National Mortgage Association

72
Q

Who pays the points on the Cal vet loan

A

A. Buyer
B. Seller
C. State of California
(D). No one does

73
Q

A real estate broker can escrow a transaction

A

(a)Only when he is involved as an agent
B. Whenever requested to do so by another broker
c. If he changes a fee for his services
d. Under no circumstances

74
Q

When real property is being escrowed, the escrow Holder may do which of the following

A

Accept written instructions from the seller and buyer to change the price and terms without the approval of any agents

75
Q

The item that would appear on the debit side of the buyer’s closing statement would be

A

Purchase price

76
Q

Money items are subject to proration in the real property sale of escrow. Buyers and sellers using escrow normally agree to proration of which of the following

A

Rent

77
Q

The provisions of the real estate settlement procedures act apply only to transactions involving certain types of property. Of the following which type of property must comply with RESPA

A

1 to 4 family residential dwellings

78
Q

Under some loans, lenders are required to provide a uniform settlement statement to the borrower. The maximum fee or charge which the lender may legally charge the borrower for preparation and submission of this required statement is

A

a. 1% of the amount borrowed
b.half of one percent of the amount borrowed
c.five dollars per page
(D) Nothing

79
Q

A voidable contract is a contract

A

Is valid and enforceable on its face, but it may be rejected by one of the parties

80
Q

All of the following are essential elements of every valid contract, except

A

The payment of money

81
Q

In order for an agreement for a transfer of real property to be binding on the buyer and seller, it must

A

Contain an offer and acceptance

82
Q

When the circumstances are such that an award of money damages would not provide an adequate remedy for default in the contract, a suit for specific performance could be successfully brought by all of the following, except

A

C. A licensed real estate broker acting as an agent for the principals

83
Q

Four months ago, a seller except to the proper offer to purchase real property. The contract was in writing. Later, the seller refused to complete the transaction, since he felt the value of the property would increase in the near future. Under these circumstances, the statute of limitations could affect the rights of the buyer to prevail in the civil action, due to a breach of a written contract within

A

a. 90 days
B. One year
C. Two years
(D) Four years

84
Q

Compliance with the agency relationship law enacted as part of the Civil Code would be required in which of the following transactions

A

D. A broker who negotiates a lease for a period of longer than one year on one half of the duplex

85
Q

When the licensee is the buyers agent, the licensee will tell others

A

As soon as possible

86
Q

A broker has a fiduciary obligation to the seller. This obligation can be compared to those that exist between

A

Trustee and beneficiary

87
Q

A prospective buyer signed an offer to purchase a parcel of real property, and gives the salesperson $1000 personal note as an earnest money deposit. In relation to this transaction, which of the following is most nearly correct

A

C. The salesperson should inform the seller, when presenting to offer, that the deposit is in note form

88
Q

Broker Sullivan delivered on offer to purchase real property to owner Mercer at 11 AM on Monday. Mercer asked for 24 hours to consider the offer. At 7 PM that same day, broker Sullivan received two additional offers from different buyers to one of the broker salesperson. Sullivan firmly believes the owner will recheck all three offers. To comply with the law, Sullivan must

A

C. simultaneously presented additional offers to the owner as soon as the owner is available

89
Q

When is a broker relieved of the obligation to present an offer to purchase real property to the principal

A

When the offer is patently frivolous or the brokers acting under the instructions of the principal

90
Q

Usually a broker has a right to commission only on the basis of negotiations which he completes during the term of the listing agreement, unless

A

A “protection Clauses” constrained in the listing agreement

91
Q

Which of the following would a broker have under an oral listing

A

d. No legal protection to receive a commission

92
Q

Seller Smith employed broker Jones under an open listing. While broker Jones was discussing Smith’s property with prospective buyer for, the broker indicated that the roof was in good condition and did not leak. In fact, seller Smith had instructed broker Jones to explain to all prospective buyers that the roof was old and would have to be replaced. After purchasing the property, buyer Thomas discovered a security leak into. The buyer, seeking relief, would most logically sue

A

D. The seller and the broker, for damages in fraud

93
Q

In reference to the listing agreement, the”hold harmless”clause protects the agent from liability for

A

Misinformation given by the seller concerning the property

94
Q

Broker Hayes took a 90 day exclusive agency listing to sell a property doubles owned by Wilson. After 30 days, Hayes had not sold the property, so Wilson sent him a certified mail letter canceling the listing. One week later Wilson listed the property with several brokers using open listings. Two weeks later, one of the workers who have an open listing on the property completed the sale to new owners. In this situation Wilson most likely

A

Is liable for payment of commission to Hayes as well as to the selling broker

95
Q

The words’ time is the essence’ can be found in which of the following contracts

A

B. Real estate purchase contract and receipt for deposit

96
Q

Which of the following with not terminate an offer to purchase real property

A

The offeror communicates notice of revocation after the offeree has properly posted acceptance

97
Q

Which of the following statements concerning options is false

A

The option binds the optionee to performance

98
Q

Broker Smith took a listing on commercial acreage and also received the right to purchase the property within 30 days. On the 28th day of the listing, the broker decided to buy the property. Before buying the property, he must

A

A. Disclose any outstanding offers
B. Give the owner of any material information
C. Obtain written consent from the owner which acknowledges any profits or anticipated profit
(d) all of the above

99
Q

The internal revenue services with the find of marginal tax rate as

A

The tax rate which is used for the next dollar of taxable income earned

100
Q

For federal income tax purposes capital expenditures for improvements are

A

Added to the’ cost basis’ of the property and depreciated

101
Q

S 71-year-old man, who lived in the house for 12 years, sold it for 36,500. He had purchased the house for 24,000. He paid a commission on the sale of 2000. For income tax purposes he would pay income tax on the long-term capital gain of

A

A. Nothing

102
Q

When a homeowner makes the monthly payment of $720 on the purchase money trustee of the single-family residence, the lender divides that payment in the following manner $498 in interest, $66 in principle, $42 and fire insurance, $114 in property taxes. Assuming those amounts remain constant for the tax year, what kind the homeowner take as an itemized deduction on his annual federal tax return

A

7,344

498 + 114 = 612 x 12 = 7,344

103
Q

An apartment owner was figuring his net income for income tax purposes. He took the gross income and deducted certain expenses. Of the ones listed below, which could he not deduct

A

D. Cost of offense

104
Q

When depreciation is taken on real property

A

B. The basis is reduced

105
Q

John sold the property to sample an installment sale for income tax purposes. The virus in an existing loan which exceeded John’s basis in the property. John bus had long relief (excessive mortgage over basis). The excess amount must be

A

D. Made a part of the down payment whether cash was received or not

106
Q

A real estate broker with most likely encountered a term “boot” when considering the problem involving

A

C. Income tax

107
Q

The state board of equalization

A

Appraises all public utility properties for tax assessment

108
Q

If the owner of the property thinks that his property has been over assessed by the County assessor, he would contact the

A

Assessment appeals board

109
Q

Beginning with the date when a parcel of property is sold to the state for delinquent taxes, the taxpayers rights of redemption exists for

A

Five years

110
Q

In which of the following ways to special tax assessments on property differ from an annual tax assessment

A

Special assessments provide for local improvements

111
Q

The provisions of the subdivision map act are enforced by the

A

City or county governing body

112
Q

Who is usually responsible for assuring availability of paved streets, utilities, curbs, and gutters in new subdivisions

A

The developer

113
Q

Davidson is subdividing, creating single-family residential lots which he intends to sell for cash. He needs maximum financing for the public improvements9 streets, curbs, sidewalks etc.) And wishes to pass the cost of these improvements on to the lot purchasers, but wants no assessment liens to appear in the title insurance policy. The best source of financing will probably be

A

D. Interim loans from institutional lenders

114
Q

A prospective purchaser is interested in buying a lot in the mountains from a subdivide or who is not a real estate licensee. The buyer wishes to know about the sewer assessments, liens, utilities to his lot, blanket encumbrances, and maintenance of streets. This information would be available through the efforts of

A

B. Real Estate Commissioner

115
Q

The owner of a five unit apartment complex has decided to sell each apartment in the building to the five presentations. He has decided that each tenant will own his own unit in fee, but will own the common areas of the building and land in undivided joint ownership. In all probability, the plan will be legally interpreted to be a

A

C. Subdivision

116
Q

All of the following statements are correct concerning the transfer of title to personal property, except

A

A. Title to personal property can be transferred by the delivery of possession
(B)The condition of the title to personal property can usually be determined by study of public records with about the same accuracy as real property
C. Personal property is usually considered to be situated in the domicile of the owner regardless of where the property actually is
D. A written instrument can be used along with the transfer of personal property but, is not always mandatory

117
Q

When alone against personal property is subject to division nine of the uniform commercial code, the financial statement may be released from the public records by

A

D. Filing a termination statement

118
Q

All of the following are common ways of measuring land, except

A

D. Metes and bounds

119
Q

A man who bought the contents of the store for 9300. He sold the goods for one third more than the cost of. He lost 15% of the selling price in bad debt. His entire profit on the investment was

A

b.$1,240

1/3 x 9300 = 3100
9300 = 3100 =12400
12400 x .15 = 1860
12400- 1860= 10540
10540-9,300= $1,240
120
Q

A man bought 260 foot lots for $18,000 net each and divided them into three lots of equals frontage which she sold for a price of $15,000 each. This percentage of gross profit was most nearly

A

c. 25%

18 x 2 =36
15x 3= 45
45-36=9
9 divided by 36 = 25%

121
Q

When estimating the value of an income property by the capitalization process, the difference between an annual net income of 30,000 capitalized at 5%, and the same amount capitalized at 6% is

A

b. 100,000

30,000 divided 5% = 600,000
30,000 divided 6% = 500,000
600-500 = $100,000

122
Q

The reciprocal of 8% is

A

c.12.5

123
Q

Two brokers agreed to split a 4 1/2% commission on a 50-50 basis on the sale of property 162,500. The listing salesperson agreed to a 50-50 split with his employing broker. The salesperson will be paid a commission of

A

d. $1828.13

162 x 41/2 = 7312.50
7312 x 50 = 3656
3656 x .50 = 1828.13

124
Q

simple interest is calculated at 8 1/2% per annum on the loan of $1968 for three years, 10 months, and 20 days. Interest was most nearly

A

c. 650

125
Q

check

A

check

126
Q

It’s a lot is 220 feet wide and 330 feet deep, contains approximately

A

d. 1-2/3rds of an acre

220 x330 = 72,600 sq f
72,600 divided by 43,560 = 1.67

127
Q

How many locks, each measuring 50 feet wide by 100 feet deep, could be created from an acre of land of the suitable dimensions

A

43,560 divided by 5000 (50x100) = 8.71 lots

128
Q

Mr. Johnson has listed 9 acres of land with a broker at a listing price of 78,300. A friend of his wants to buy part of the land measuring 100 feet 145.2 feet. The purchase price of the smaller parcel will be based on the listed price and will be

A

b.More than 2500 less than 3000

100 x 145.2=14520 divided by 43560 = 1/3 acre
78,300 divided by 9 = $8700 per acre
$8,700 divided by 3= $2,900

129
Q

Morgan sold her residence which was unencumbered. Morgan received the closing check from escrow amounting to $91,740 after paying closing costs in the amount of $1291.80 plus 6% for the broker’s commission. The selling price was most nearly

A

d. 98,970

130
Q

It would be perfectly ethical front appraiser to do which of the following

A

Appraiser property in which the appraiser has an interest, provided appraiser’s first discloses the interest

131
Q

While appraising out residence Inn at Hillside subdivision, the appraiser observes cracks in the foundation and notices that the doors and windows do not close properly. The appraiser would probably recommend that which of the following the order

A

D. A soils engineering report

132
Q

When an appraiser is appraising properties usually considers all of the following except

A

D. The assessed value

133
Q

Definitions of market value are least concerned with

A

A . Material cost

134
Q

Placing two or more contagious units under common ownership for the purpose of increasing the value per unit is known as

A

C. plottage

135
Q

Property should be valued at its highest and best use. If appraisers appraising a parcel which has building on the land that is not asset, he should

A

Deduct the demolition cost from his appraisal

136
Q

Which of the following principles as the basis of the market data approach when appraising residential property

A

The principle of substitution

137
Q

Rental schedules for various units of space are realistically established on what basis

A

Market comparison

138
Q

When appraising a property using the market data approach, the value of the property is

A

Inferred from sales of comparable properties

139
Q

The hardest and yet the most important part of the market data method of appraising is

A

Adjusting for the differences between the comparable properties and the subject property

140
Q

An appraiser is appraising the value of an older building using the replacement cost approach. He would include all of the following items except

A

An appropriate capitalization rate

141
Q

Usefulness of the cost approach would be limited when

A

Appraising an old structure with money functional deficiencies

142
Q

When an appraiser contrasts the phrase reproduction cost and the phrase replacement cost, replacement would be more closely associated with which of the following concepts?

A

The present cost to replace the building with another building having the same utility

143
Q

According to economic theory, if interest rates increase and rents are stable, what is the effect on the value of rental properties

A

a. Values will decrease

144
Q

Wolf is considering an extensive modernization program for older apartment building she owns. Her decision should give most emphasis to

A

Net effect on net income

145
Q

In the income approach to value, recapture of capital investment and improvements is provided for by

A

Accruals for depreciation

146
Q

To arrive at a rough estimate of the value rental property, investors sometimes use a gross rent multiplier. If the monthly gross income of the property is 2400, and a gross rent multiplier of 10.72 is used, the estimated value of the property would be most nearly

A

a. 308.736

2,400 x 12 = 28,000
28,800 x 10.72 = $308,736

147
Q

When it was appraised, a single-family home was 15 years old. The average life of such building is 40 years. Because of an excellent maintenance, and appraisal decided the age of the actual structure is six years. This is an example of the concept of

A

C. Effective age

148
Q

The time period during which are building burned sufficient income to justify its continued operation as a definition for

A

D. Economic life

149
Q

The measure of distance which is a parcel of property abuts on the street is called the

A

B. Frontage of the lot

150
Q

Each of the following terms refers to types of soil conditions except

A

B. Decidious

Real Estate (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions