ISBN 10: 0324787499

A designation awarded for completion of real estate courses sponsored by Boards of REALTORS is the GRI or Graduate of the REALTORS ____________________. Answer: Institute Answer: Institute Answer: Institute A(n) ____________________ contract results when a promise is exchanged for performance. Answer: unilateral Answer: unilateral Answer: unilateral A settlement statement, also called a ____________________ statement, is given to

In a situation where all the documents are not yet available but it would be difficult to reschedule the closing meeting, the parties may agree to a ____________________ closing. Answer: dry Answer: dry Answer: dry Under a construction loan, also called a(n) ____________________ loan, money is advanced as construction takes place. Answer: interim Answer: interim Answer: interim A(n)

Actual cash value is the new price minus accumulated depreciation and is, in effect, "new for old". Answer: FActual cash value is the new price minus accumulated depreciation and is, in effect, "old for old". Answer: FActual cash value is the new price minus accumulated depreciation and is, in effect, "old for

A duly qualified person who has passed the real estate license exam and joined a brokerage firm is most properly referred to as a licensee. Answer: TA duly qualified person who has passed the real estate license exam and joined a brokeragefirm is most properly referred to as a licensee. Answer: TA

When real property is taken by means of eminent domain, the government has to pay the landowner fair market value. Answer: TThe government has to pay the landowner fair market value. Answer: TThe government has to pay the landowner fair market value. Answer: T The government has to pay the landowner fair market value. Brokers

In some states the board of equalization equalizes assessment procedures between counties. Answer: TIn some states the purpose of a board of equalization is to equalize assessment procedures between counties. Answer: TIn some states the purpose of a board of equalization is to equalize assessment procedures between counties. Answer: T In some states the

A contract can be discharged by novation. Answer: TA contract can be discharged by novation. Answer: TA contract can be discharged by novation. Answer: T A contract can be discharged by novation. An easement may be removed from county records by a quit claim deed signed by the owner of the easement. Answer: TAn easement may

Two sellers lead a buyer to believe that broker Charlotte is their agent without notifying Charlotte of the fact. This is an example of express agency. Answer: FThis would be an example of ostensible authority. Answer: FThis would be an example of ostensible authority. Answer: F This would be an example of ostensible authority. Elaine wants

Under the ____________________ of ____________________ clause, if the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser. Answer: power, sale Answer: power, sale Answer: power, sale The amount of coverage provided by a lender's title policy stays constant over the life of the policy. Answer: FThe amount

Money or anything worth money exchanged in a contract is classified as unilateral consideration. Answer: FMoney or anything worth money would be considered valuable consideration. Answer: FMoney or anything worth money would be considered valuable consideration. Answer: F Money or anything worth money would be considered valuable consideration. Typically there is no specific educational requirement

The main problem that can arise with a dual agency is the agent may experience a conflict of interest. Answer: TThe main problem that can arise with a dual agency is the agent may experience a conflict of interest. Answer: TThe main problem that can arise with a dual agency is the

A property owner who suffers from a government's exercise of its _________________________ will not be compensated for her loss. Answer: police powers Answer: police powers Answer: police powers Real-cost inflation can be cooled by environmental controls and depletion of natural resources. Answer: FReal-cost inflation can be intensified by environmental controls and depletion of natural resources. Answer:

A payment cap leaves open the amount the borrower's monthly payment can increase in any one year. Answer: FA payment cap sets a limit on the amount the borrower's monthly payment can increase in any one year. Answer: FA payment cap sets a limit on the amount the borrower's monthly payment can increase

The statute of limitations concerns time limits for filing a lawsuit. Answer: TThe statute of limitations concerns time limits for filing a lawsuit. Answer: TThe statute of limitations concerns time limits for filing a lawsuit. Answer: T The statute of limitations concerns time limits for filing a lawsuit. Permission to use a building for a

Fiduciary responsibilities of an agent to the principal include faithful performance, loyalty, and provision of legal advice. Answer: FFiduciary responsibilities of an agent to the principal include faithful performance and loyalty but not provision of legal advice. Answer: FFiduciary responsibilities of an agent to the principal include faithful performance and loyalty but

The index stays constant over the life of the loan but the margin will vary. Answer: FAs a rule, the index will vary and the margin will stay constant. Answer: FAs a rule, the index will vary and the margin will stay constant. Answer: F As a rule, the index will vary and the

Ownership of the interior space of your home and garage and an undivided interest in the building structures, common areas, and land area of the entire project describes a cooperative. Answer: FOwnership of the interior space of your home and garage and an undivided interest in the building structures, common areas,

An exclusive agency listing permits the owner to sell through their own effort without liability to pay a commission to the listing broker. Answer: TAn exclusive agency listing permits the owner to sell through their own effort without liability to pay a commission to the listing broker but the owner cannot

____________________ agency is the representation of two or more principals in a transaction by the same agent. Answer: Dual Answer: Dual Answer: Dual _________________________ loans provide a "piece of the action" for insurance companies as well as more inflation protection than a fixed rate of interest. Answer: Participation Answer: Participation Answer: Participation A package mortgage involves several properties

Medical payments coverage provides payment regardless of who is at fault. Answer: TThe main difference between medical payments coverage and liability coverage is that medical payments coverage provides payment regardless of who is at fault. Answer: TThe main difference between medical payments coverage and liability coverage is that medical payments coverage provides

A church that operates housing for the elderly may not restrict occupancy to members of the church even if membership in the church is open to all persons. Answer: FA church that operates housing for the elderly may restrict occupancy to members of the church if membership in the church is

Each of the following ownerships combines common ownership and exclusive possession of a dwelling unit. All require dues to support the common elements. Which one allows separate, individual ownership of a dwelling and a lot? a. Timeshare unit b. Condominium c. Cooperative apartment d. Planned unit development Answer: DPlanned unit developments allow separate, individual ownership

The least appropriate person to choose which title and escrow company to use in closing a real estate sale would be a. the seller. b. the listing agent. c. the buyer. d. the home builder. Answer: BThe least appropriate person to choose which title and escrow company to use in closing a real estate sale

Equity sharing is based on the concept of someone who has assets sharing those assets in exchange for a. a share of the ownership. b. tax benefits. c. both a and b. d. neither a nor b. Answer: AEquity sharing is based on the concept of someone who has assets sharing those assets in exchange

A contract that contains predetermined rent increases to take effect during the life of the lease is a. a step-up lease. b. one with a participation clause. c. a percentage lease. d. a net lease. Answer: AA contract that contains predetermined rent increases to take effect during the life of the lease is a step-up lease. Answer:

An agent's authority may be granted by a. written agreement. b. custom in the industry. c. both a and b. d. neither a nor b. Answer: CAn agent's authority may be granted by written agreement or custom in the industry. Answer: CAn agent's authority may be granted by written agreement or custom in the industry. Answer: C An

A residential apartment tenant would be expected to pay the landlord for a. normal wear and tear. b. damage to the apartment caused by the tenant. c. any change in the apartment. d. sun-faded carpet. Answer: BA residential apartment tenant would be expected to pay the landlord for damage to the apartment caused by the

An example of an encumbrance would be a. a servient estate. b. a dominant estate. c. a life estate. d. an easement in gross. Answer: DThis is an encumbrance to the land owner. Answer: DThis is an encumbrance to the land owner. Answer: D This is an encumbrance to the land owner. Which of the following would NOT involve

One of the main advantages of being a limited partner is a. the profits of a limited partner are tax free. b. limited partners can help with management. c. limited partners are not held responsible for management. d. limited partners are separate legal persons. Answer: COne of the main advantages of being a limited partner

An existing structure that would be prohibited under current zoning laws is called a. a restrictive zone use. b. a nonconforming use. c. an impact statement property. d. a land use restriction. Answer: BAn existing structure that would be prohibited under current zoning laws is called a nonconforming use. Answer: BAn existing structure that would be

Real estate commissions typically do all of the following EXCEPT a. review license exam answers. b. hold hearings in response to complaints of improper actions of licensees. c. enact new real estate legislation or amend existing legislation. d. determine the number and location of exam testing sites. Answer: CReal estate commissions typically do not enact

By 1985, the market for residential housing for first-time buyers was strongest for the sale of a. condominium units. b. large single-family houses of more than 1600 square feet. c. smaller single-family houses of approximately 1000 square feet. d. cooperative housing. Answer: CBy 1985, the market for residential housing for first-time buyers was strongest for

Generally, for every job created by a base industry, there will be created in service industries approximately a. an equal number of jobs. b. two jobs. c. one job for every two persons employed in the base industry. d. four jobs. Answer: BGenerally, for every job created by a base industry, there will be approximately

Regulation Z requires a lender to disclose a. interest charges expressed as dollars and percent. b. dollar amount of any finance charge. c. APR as a dollar amount. d. all charges only as a percent. Answer: BThis is required by Regulation Z. Answer: BThis is required by Regulation Z. Answer: B This is required by Regulation Z. In a

The amount of earnest money necessary for a given transaction is NOT determined by a. the buyer. b. the seller. c. the buyer and seller. d. the broker. Answer: DThe buyer and seller determine the amount of earnest money. Answer: DThe buyer and seller determine the amount of earnest money. Answer: D The buyer and seller determine the

An investor is using borrowed money to increase the rate of return on a cash investment in an income property. He is a. using leverage. b. using a trust deed. c. kiting. d. insolvent. Answer: AUsing borrowed money to increase the rate of return on a cash investment in an income property is using leverage. Answer: AUsing

A mortgage or trust deed is considered to be a. an estate in land. b. a promissory note. c. chattel. d. debt security. Answer: DA mortgage or trust deed is considered to be debt security. Answer: DA mortgage or trust deed is considered to be debt security. Answer: D A mortgage or trust deed is considered to be

The difference between a variance and a nonconforming use is that a. a variance changes the permitted use; nonconforming use does not. b. nonconforming use changes zoning; a variance does not. c. the nonconforming use first occurs after the zoning changes. d. the variance was in effect before the zoning. Answer: AThe difference between a

If title to real property remains in the seller's name after it is sold on an installment payment plan, the buyer would have purchased it under a. an FHA mortgage. b. a conventional mortgage. c. a contract for deed. d. a VA loan. Answer: CIf title to real property remains in the seller's name after

Which statement is true of title insurance? a. It is required by law b. It insures the owner against defects in title c. It reveals all defects in the chain of title d. It is only required for commercial property Answer: BTitle insurance insures the owner against defects in title. Answer: BTitle insurance insures the owner

If, in showing a property, the salesperson said, "In my opinion, this house is absolutely the greatest in the world," the salesperson a. could lose his license for fraud. b. is guilty of misrepresentation. c. is puffing. d. is guilty of redlining. Answer: CIf, in showing a property, the salesperson said, "In my opinion, this

A real estate listing is a contract between a. the owner and the listing broker. b. the owner, the broker, and the listing salesperson. c. the owner and the listing salesperson. d. the broker and the listing salesperson. Answer: AA real estate listing is a contract between the owner and the listing broker. Answer: AA real

Coverage for additional perils can be obtained by a. purchasing a separate policy. b. adding an endorsement to a regular fire insurance policy. c. both a and b. d. neither a nor b. Answer: CCoverage for additional perils can be obtained by purchasing a separate policy or by adding an endorsement to a regular fire

Lenders on real estate mortgages may require that the borrower provide a. a replacement cost policy on the full amount of the loan. b. insurance in an amount equal to the purchase price of the property. c. inflation guard coverage. d. content coverage. Answer: ALenders on real estate mortgages may require that the borrower provide

a. acre k. informal references b. adaptation l. nonhomogenity c. agreement m. personal property d. appurtenance n. quadrangle e. base line o. real estate f. bench marks p. recorded plat g. datum q. scarcity h. fixity r. situs i. government survey s. vertical land descriptions j. improvements t. water table 1> any form of land development, such as buildings, roads,