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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 be signed by the
a. beneficiary.
b. trustor.
c. trustee.
d. grantee.
The basic role of the GNMA is to
a. resupply capital to primary lenders by guaranteeing repayment of pools of mortgage
loans.
b. insure loans made by primary government lenders.
c. sell mortgage pools to money market funds.
d. facilitate the resale of mortgage loans by marketing participation certificates.
With regard to truth in lending laws, which of the following is legally permissible to
advertise, without further explanation?
a. Only $1,000 down payment
b. Less than $500 per month
c. 11% interest loan
d. APR 10% assumable
By what power do government bodies enforce zoning?
a. Eminent domain
b. Condemnation
c. Dominant estate
d. Police power
When two or more properties serve as collateral for the same loan, it is called a
a. blanket mortgage.
b. tandem mortgage.
c. security mortgage.
d. blended rate mortgage.
Sylvia and Bart, sister and brother, purchased a parcel of real property. Each had an
undivided one-half interest. This could be an example of
a. severalty.
b. dower ownership.
c. co-ownership.
d. curtesy rights.
A real estate listing
a. is an employment contract between a property owner and a real estate broker.
b. authorizes a real estate broker to sell and convey title to an owner's real property.
c. both a and b.
d. neither a nor b.
All of the following real estate documents are usually recorded EXCEPT
a. a mortgage.
b. an easement.
c. a 99-year lease.
d. a promissory note.
A mortgage taken by a seller from the buyer in part payment of the purchase price of
real estate is known as
a. seller financing.
b. a conflict of interest.
c. usury.
d. a second trust deed.
A person would be guilty of discriminatory block busting in which of the following
cases?
a. Circulating information about socio-economic changes in a neighborhood
b. Profiting from socio-economic changes in an old neighborhood
c. Building a single family residence in an area which was predominantly
condominiums
d. Inducing owners to sell by telling them an untruth about falling property values
A mortgagor signs a deed conveying title to the mortgagee, leaving the mortgagee
without recourse. This is an example of
a. deed of surrender.
b. deed in lieu of foreclosure.
c. satisfaction of mortgage.
d. defeasance.
A 100-unit apartment building would typically require how many full-time management
personnel?
a. 1
b. 2
c. 4
d. 6
An option to purchase real property is NOT
a. a contract.
b. covered by the statute of frauds.
c. covered by real property laws.
d. cancelable by the optionor.
The trustee of a deed of trust
a. may be the beneficiary.
b. may bid at the foreclosure sale.
c. has naked title.
d. always knows of his appointment.
The recording of an instrument in the proper county provides the public with
a. constructive notice.
b. final notice.
c. bona fide notice.
d. after-acquired notice.
In the following examples, who needs a real estate license?
a. Trustees selling foreclosed property for a lender
b. Government employees finding tenants for government properties
c. An attorney at law selling his clients property to settle an estate
d. A nonexempt person dealing in real property for others for compensation
When should a purchase money mortgage properly be recorded?
a. Before the deed
b. After the deed
c. At the same moment as the deed
d. Upon full payment
A request for a court-appointed hearing to determine the lawful ownership of a parcel of
land is called a
a. cloudy title suit.
b. quiet title suit.
c. partition suit.
d. eminent domain suit.
Depreciation resulting from outmoded design is classed as
a. functional obsolescence.
b. physical deterioration.
c. economic obsolescence.
d. social obsolescence.
From the following, select the parties to a land sales contract.
a. Lessor-Lessee
b. Mortgagor-Mortgagee
c. Grantor-Grantee
d. Vendor-Vendee
Which of the following is real property?
a. Farm equipment
b. Cotton ready to be harvested
c. Swing set from Wal-Mart set in concrete
d. Lawn mower
A deed is
a. the only way to transfer title to land.
b. the most commonly used means of land title conveyance.
c. a recorded instrument.
d. valid for a predetermined period of time.
The term "usury" in the field of real estate lending means charging an interest rate over
and above
a. the legal limit.
b. the prime rate.
c. 10%.
d. 20%.
A trustor's relationship to a beneficiary is most nearly the same as a
a. grantor to a grantee.
b. beneficiary to a trustee.
c. buyer to a seller.
d. mortgagor to a mortgagee.
An offeree who wishes to bind the offeror to the contract may do which of the
following with an offer?
a. Accept it
b. Modify it slightly before acceptance
c. Withdraw it prior to acceptance
d. Accept and counter with conditions
Who must pay the discount points on a FHA loan?
a. Anyone who agrees to
b. Seller
c. Buyer
d. There are no points on a FHA loan
When a real estate settlement is held in escrow
a. there is no closing meeting.
b. the closing process may be conducted by mail.
c. both a and b.
d. neither a nor b.
A new home developer who is including appliances with the sale of each house most
probably would assist the buyer in obtaining a
a. blanket mortgage.
b. shared appreciation mortgage.
c. equity sharing mortgage.
d. package mortgage.
A parcel of land 330" x 1320" was subdivided into 8 lots. How many acres were
contained in each lot?
a. .125
b. 1.25
c. 5.45
d. 8
A woman allowed her neighbor to drive over her property to get to his own. The woman
may have given her neighbor
a. an encumbrance.
b. a right of way.
c. a condemnation.
d. a lien.
Of the following, the final action to be taken to complete a closing is
a. acknowledgement of all instruments.
b. recordation of appropriate instruments.
c. signing of the deed.
d. title search.
A housing discrimination victim may seek recourse by all EXCEPT
a. formal complaint to the Department of Housing and Urban Development.
b. suit in a state court of competent jurisdiction.
c. complaint with the state real estate commission.
d. complaint filed with the U.S. Attorney General.
When borrowing money to buy a home, the borrower has the right of rescission.
In a planned unit development, the owner's association can dictate interior and exterior
colors, exterior landscaping, and use of common areas.
The _________________________ is the total dollar amount the credit will cost the
borrower over the life of the loan.
A subdivider wants to limit the height to which trees can grow so as to preserve views
in the neighborhood. This would most likely be done with a zoning amendment.
In a state recognizing community property, real property acquired before marriage is
brought into the marriage as community property.
By law lenders are required to disclose an interest rate cap.
The interest rate on an ARM is tied to a(n) ____________________ rate.
A mortgage in which the lender collects additional money to pay hazard insurance and
property taxes on the mortgaged property is called a(n) ____________________
mortgage.
Taxes on real property are levied on an ad valorem basis.
Documents to be recorded are photocopied and then placed in alphabetic order.
____________________ inflation results in higher prices due to increased costs of
labor and supplies.
One major advantage of a deed of trust over a mortgage is the time between default and
foreclosure is relatively short.
The regulations by which anyone purchasing a unit in the condominium must abide are
known as ____________________, conditions, and Restrictions.
The most time consuming item in carrying out the terms of the purchase contract is the
termite inspection.
A public improvement benefits the general public and is financed through a general
property tax.
The most distinguishing characteristic of joint tenancy is the right of
____________________.
