Test qestions

Question 1

A Home located in an area where there are factories with a great deal of smoke and dust experiences

Answer 1

economic/external obsolescence

Question 2

The anti-fraud provision of the Interstate land Sales Full Disclosure Act applies to

Answer 2

Sales of lots in subdivisions containing 30 lots

Question 3

If you have a loan and transfer the title to another individual without informing the lender, it is likely that the lender will demand payment of the outstanding loan balance. He is able to to this because of a clause in your mortgage called the

Answer 3

acceleration Clause

Question 4

A licensee whose license has been revoked after a hearing may appeal to the

Answer 4

superior court for his county within 20 days

Question 5

Mass Housing ability income and price limits is determined by

Answer 5

U.S. Treasury and HUD

Question 6

A lender is able to decide if a loan to be made is eligible for FHA insurance. This ability of the lender is known as

Answer 6

direct endorsement

Question 7

The Truth-in-Lending Act prohibits what

Answer 7

Advertising only the percentage of down payment

Question 8

RESPA requirements include what

Answer 8

the prohibition of a broker’s receiving a referral fee from a lender (prohibits kickbacks

Question 9

A lease for less than one year must be

Answer 9

in writing

Question 10

Under MLS, Broker L is listing agent. Broker S with no subagency brings buyer. Who is the buyer agent

Answer 10

Broker S

Question 11

Each of the following is an essential element of every real estate sales contract:

Legality of object
consideration
reality of consent
acknowledgement

Answer 11

acknowledgement

Question 12

Functional obsolescence can be created by

Answer 12

over improvement

Question 13

An investor making extraordinary profits from a mini-warehouse is concerned with the principle of

Answer 13

competition

Question 14

What type of mortgage may permit a builder to obtain the release of lots, one at a time, as they are developed?

Answer 14

Blanket mortgage

Question 15

All of these statements regarding restrictive covenants on real property are true EXCEPT that they

• run with the land
• are enforceable in court unless contrary to public policy
• are limit to a specific time period
• may be removed from the record without legal action

Answer 15

-are limit to a specific time period

Question 16

To be admissible to record in the appropriate public record office, a deed must be

Answer 16

signed by the grantor

Question 17

What does a guarantor convey with the covenant of quiet enjoyment

Answer 17

assurance that the title will be good against the claims of third parties

Question 18

The best way to discover a flaw in the recorded title to a piece of real property is by

Answer 18

undertaking a search to title

Question 19

A borrower obtains a home improvement loan secured by her house that is neither insured nor guaranteed by a government agency, She has obtained which type of loan.

Answer 19

Conventional

Question 20

The federal Fair Housing Act prohibits discrimination based on which of the following

Answer 20

race, national origin or color

Question 21

The party that has the right to cross his adjoining neighbor’s property is

Answer 21

Dominant tenement

Question 22

According to the MA laws against discrimination, which of the following acts would not be prohibited conduct

Answer 22

a broker advertising a house for sale in a newspaper intended for readers of a particular race or ethnic group.

Question 23

What is both a lien and an encumbrance

Answer 23

a mortgage

Question 24

If there is no redemption of the property, how long must a tax sale purchaser wait before starting action to obtain title to the land

Answer 24

One year from the date of the tax sale

Question 25

Generally, things or objects of temporary or easily movable nature are

Answer 25

personalty

Question 26

The effect of a lease assignment is that the

Answer 26

entire lease interest is transferred

Question 27

Lee owns two single family homes and wishes to sell only to Asians. Without violating the 1968 Act, he may

Answer 27

NEVER base a selling decision on race

Question 28

A municipal lien certificate would be obtained from

Answer 28

the local tax collector

Question 29

A broker will be placing a property for online ad. In this situation what must a broker or agent place in the online ad

Answer 29

Brokers name

Question 30

What is required in the Truth-In-Lending disclosure statement

Answer 30

- terms of prepayment penalty - annual percentage rate - finance charge

Question 31

After a judicial foreclosure sale, the court would most likely arrange for the purchaser to receive a

Answer 31

commissioner's deed

Question 32

Which does NOT have to be in writing - Listing - Ten year lease - P&S agreement - Deed

Answer 32

Listing

Question 33

Property taxes are assessed and collected by the

Answer 33

individual municipalities

Question 34

Which law requires that all ad's that references mortgage financing terms containing certain disclosures

Answer 34

Truth in LEnding Act (Reg Z)

Question 35

Why is the Civil Rights Act of 1866 unique

Answer 35

it provides no exceptions that would permit racial discrimination `

Question 36

A new office building constructed in an old neighborhood is for sale. What is the best method of appraisal to use?

Answer 36

RCN minus depreciation plus land

Question 37

An easement is most commonly terminated by

Answer 37

quitclaim deed

Question 38

Solve for Income

Answer 38

Rate x Value(sale price)

Question 39

Solve for Value (sale price)

Answer 39

Net operating Income DIVIDED BY Cap Rate

Question 40

Solve for Rate

Answer 40

Net Operating Income DIVIDED BY Value (sale price)