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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 separated from his wife and filed for divorce. They own property as tenants
by the entirely. He signs an exclusive right to sell listing agreement. The wife does not
sign. The broker then brings a full price offer which the husband accepts. The wife does
not sign. Which is true?
a. The broker cannot collect a commission since the wife didn't sign the listing.
b. The broker may sue the wife for specific performance.
c. The broker may collect commission from the husband only.
d. The broker may collect from the husband and wife.
When a clause in a mortgage allows the lender to proceed against a borrower's other
assets if the foreclosure sale does not satisfy the debt, the result is called a
a. statutory redemption.
b. deficiency judgment.
c. equity of redemption.
d. foreclosure redemption.
The CRA statement should contain all of the following EXCEPT
a. a map of the lender's definition of its community.
b. a list of credit services it offers.
c. a copy of the public notice in its lobby.
d. the names of all lending institutions in the area.
Broker commissions for the sale of real property are usually based on
a. amount of the first written offer.
b. selling price.
c. listed price.
d. loan amount.
One of the main differences between a regular mortgage and a deed of trust is
a. the number of parties.
b. rights of possession.
c. recording.
d. ownership.
A lender wanting title insurance coverage on a property it is taking as collateral would
ask for
a. an owner's title policy.
b. a mortgagee's title policy.
c. a mortgagor's title policy.
d. a buyer's policy.
Industries which produce goods and services for export are referred to by all of the
following terms EXCEPT
a. base industries.
b. export industries.
c. primary industries.
d. backbone industries.
Under the terms of an exclusive right to sell listing, a commission is due the listing
broker if a buyer is found by
a. the listing broker.
b. a sales associate employed by the listing broker.
c. another broker.
d. any of the above.
A contract created under duress is
a. invalid.
b. voidable.
c. unenforceable.
d. void.
All of the following offer secondary mortgage market programs EXCEPT
a. FNMA.
b. FDIC.
c. FHLMC.
d. GNMA.
Which of the following contains more than one acre of land?
a. 208" x 208"
b. 303" x 144"
c. 207" x 209"
d. 435" x 100"
An alienation clause in a mortgage loan is to the advantage of the
a. borrower.
b. lender.
c. mortgagor.
d. seller.
In a special assessment district, which occurs first?
a. Bonding
b. Hearing
c. Confirmation
d. Assessment collection
It is the responsibility of the real estate broker to
a. submit only those offers that meet the listing price.
b. decide which offers are in the principal's best interest.
c. quote only the listing price, but present all offers.
d. say whatever is necessary to get an offer.
Real estate commissions or departments act to protect the public by regulation and
education. The following would be the usual activity of these organizations EXCEPT
a. requiring a specific number of answers on a real estate license exam.
b. requiring all licensees to be reexamined every two years.
c. holding public hearings in response to complaints of improper actions of licensees.
d. requiring a licensee to post a bond or contribute to a recovery fund.
When a property is optioned, the optionor is the
a. buyer.
b. vendor.
c. owner.
d. lessee.
All of the following mortgages require either flood insurance or a certificate that the
mortgaged property is not in a flood zone EXCEPT
a. VA-guaranteed mortgages.
b. FHA-insured mortgages.
c. mortgages carried back by sellers.
d. conventional mortgages secured from federally chartered savings and loans
associations.
Which of the following supplies money to finance home loans?
a. Fannie Mae
b. FHA
c. VA
d. Savings and loans
The advent of the secondary mortgage market
a. made available previously untapped sources of money for real estate mortgage loans.
b. contributed to real estate speculation and inflation in the late 1970s.
c. both a and b.
d. neither a nor b.
The war clause exemption in property insurance policies includes losses or damage
caused by
a. insurrection.
b. enemy attack.
c. usurped power.
d. all of the above.
State laws that provide the legal framework for condominium ownership may be
identified by any of the following terms EXCEPT
a. strata titles act.
b. cooperative housing act.
c. condominium act.
d. horizontal property act.
A farm, consisting of 160 acres of cultivated land, is sold. Which of the following
requires an expressed agreement, in addition to the deed, in order to transfer ownership?
a. Cultivated crops
b. Subsurface rights
c. Farm house
d. Detached garage
When advertising, a lender must disclose the
a. cost of appraisal.
b. annual percentage rate.
c. closing costs.
d. cost of the title search and title insurance.
The governing body of a cooperative is called a
a. cooperation.
b. board of directors.
c. cooperator.
d. cooperative commission.
An investor sells his real property using an installment sale. His capital gains tax would
be due
a. never, if he owned the property for more than one year.
b. after the last installment s paid.
c. the year of the sale.
d. as he receives the payments.
When moving to a new state, a licensed real estate agent in one state can presume his
license status in the former state will be given credit in his new state of residence
a. always.
b. sometimes.
c. never.
d. when moving to Texas only.
A nonexempt person who sells real estate for others
a. must always be licensed.
b. need not be licensed if there is no listing agreement..
c. must be a licensed broker.
d. can sell real estate to people in other states.
Under the Real Estate Settlement and Procedures Act, all of the following are required
of the lender EXCEPT
a. submission to the borrower of the booklet "Settlement Costs and You".
b. submission of a "good faith estimate" of loan closing costs.
c. disclosure of the "Annual Percentage Rate".
d. use of the Uniform Settlement Statement for closing.
Demand-pull inflation has little to do with
a. manufacturing costs.
b. the availability of money.
c. buyers bidding against each other.
d. too much money chasing too few goods.
A landlord package policy provides coverage for
a. property damage.
b. liability.
c. loss of rents.
d. all of the above.
The seller decided that he didn't want to sell his house a few days before closing. He
can
a. simply not show up to sign the deed.
b. return the earnest money deposit and declare the contract void.
c. be sued by the buyer for specific performance and damages.
d. can refuse to pay the broker a commission.
A judgment, when properly recorded, becomes
a. a voluntary lien.
b. an involuntary lien.
c. a specific lien.
d. a personal lien.
During the period from 1975 to 1980, the attractiveness of real estate as an investment
was enhanced by all of the factors below EXCEPT
a. tax deductions for interest on mortgage loans.
b. rapidly appreciating property values.
c. capital gains tax treatment of sales.
d. declining interest rates for mortgage loans.
Price fixing and monopolies are prohibited by federal fair housing laws.
A TV antenna attached to the chimney would be considered the property of the sellers
and could be removed by them.
____________________ insurance is the foundation of property damage policies.
A deed in lieu of foreclosure relieves the lender of foreclosing and waiting out any
required redemption period.
A certificate of reasonable value is issued by a HUD appraiser.
The insured is one who is ____________________ by insurance.
The role of the FHA in residential mortgage lending is loaning the money.
The term REALTOR applies to any licensed real estate salesperson.
For income tax purposes, a single taxpayer can exclude up to ____________________
of gain from the sale of the taxpayer's principal residence.
The borrower under a deed of trust is called the beneficiary.
The Certified Property Manager (CPM) designation is available from the Organization
of Property Managers.
In addition to a grantor, grantee, land description, consideration and grantor signature,
for a deed to convey ownership, there must be ____________________ and
____________________.
Mortgage companies tend to lend their own money and retain the loans in their
portfolio.
The cost of mortgage loan borrowing is dependent on the cost of money to the lender,
reserves for default, loan servicing costs, and available investment alternatives.
Most loans contain a due-on-sale clause which is also called a call clause or a(n)
____________________ clause.
