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 ____________________. A(n) ____________________ contract results when a promise is exchanged for performance. Answer: unilateral A settlement statement, also […]

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. Under a construction loan, also called a(n) ____________________ loan, money is […]

Actual cash value is the new price minus accumulated depreciation and is, in effect, “new for old”. In addition to the up-front mortgage insurance premium the FHA now charges a(n) ____________________ premium of 1/2 of 1% of the loan balance. […]

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. Zoning laws compensate an owner for loss of property value due to zoning. Answer: F […]

When real property is taken by means of eminent domain, the government has to pay the landowner fair market value. Brokers can indemnify themselves against legal actions by those with whom they deal by purchasing errors and omission insurance. Answer: […]

In some states the board of equalization equalizes assessment procedures between counties. A lease for a definite period of time, which terminates when that time has expired, is a periodic estate. Answer: F A lease for a definite period of […]

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: T An easement may be removed from county records by a quit […]

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. Elaine wants to leave her real estate to her nephew, Farquart, but desires the […]

Under the ____________________ of ____________________ clause, if the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser. The amount of coverage provided by a lender’s title policy stays constant over the life […]

Money or anything worth money exchanged in a contract is classified as unilateral consideration. Typically there is no specific educational requirement for obtaining a salesperson license. Answer: F Before being granted an original salesperson’s license, an applicant must complete any […]

The main problem that can arise with a dual agency is the agent may experience a conflict of interest. The purpose of requiring consideration is to demonstrate that a bargain has been struck between the parties to the contract. Answer: […]

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

A payment cap leaves open the amount the borrower’s monthly payment can increase in any one year. A common element where the use is restricted to a specific unit owner is called a ____________________ common element. Answer: limited A salesperson […]

The statute of limitations concerns time limits for filing a lawsuit. Permission to use a building for a nonconforming use may be accomplished by obtaining a zoning ordinance. Answer: F This is not a way to get permission to use […]

Fiduciary responsibilities of an agent to the principal include faithful performance, loyalty, and provision of legal advice. A listing that gives the broker the right to collect a commission no matter who sells the property during the listing period is […]

The index stays constant over the life of the loan but the margin will vary. A ____________________ broker is a full service broker who charges less than the prevailing commission rates in his community. Answer: discount The ____________________ Amendment prohibits […]

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. In community property states, property not held as community property […]

An exclusive agency listing permits the owner to sell through their own effort without liability to pay a commission to the listing broker. A listing can be terminated by improper performance or ____________________ by the broker. Answer: abandonment An acknowledgement […]

____________________ agency is the representation of two or more principals in a transaction by the same agent. _________________________ loans provide a “piece of the action” for insurance companies as well as more inflation protection than a fixed rate of interest. […]

Medical payments coverage provides payment regardless of who is at fault. Some real estate agents and lenders refer to a loan that is carried back by a seller as a purchase money mortgage. Answer: T Some real estate agents and […]

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. Typically an investment in a REIT requires a large amount of money. […]

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 […]

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. The definition of fair market […]

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. A man has […]

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. A deed for reconveyance would […]

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. Rules governing how a condominium owners’ association will be run would be found in the […]

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. A city or county sponsored […]

An example of an encumbrance would be a. a servient estate. b. a dominant estate. c. a life estate. d. an easement in gross. Which of the following would NOT involve the documented transfer of title? a. Avulsion b. Eminent […]

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 […]

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. A woman who lived in a retirement home […]

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 […]

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 […]

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 […]

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. In a condominium, which of […]

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. Which of the following in an old commercial building would most likely […]

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. Upon payment of the debt secured […]

A mortgage or trust deed is considered to be a. an estate in land. b. a promissory note. c. chattel. d. debt security. A borrower does not have the right, under the truth-in-lending laws, to rescind a credit transaction a. […]

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 […]

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. […]

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 […]

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 […]

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. A change […]

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. The most important factor in determining whether […]

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. […]

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 […]