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
Two buyers purchase a home through a broker. After the close of escrow, the buyers
discover a structural problem with the property, which the seller had not disclosed to
anyone, including the broker. The buyers attempted to rescind their agreement. If they
succeed, what commission is the broker entitled to in this case?
a. Full commission
b. Expenses only
c. None
d. Full commission minus expenses
Which of the following is required to create a joint tenancy?
a. Unities of time, title, interest and possession need not be present.
b. New joint tenants may be added without forming a new joint tenancy.
c. Survivorship exists among joint tenants.
d. Only a husband and wife may hold title as joint tenants.
Among several methods of recourse, a person who is discriminated against must file a
written complaint to
a. HUD.
b. the state real estate commission.
c. the local association of REALTORS .
d. a civil court.
According to the 1968 Fair Housing Law, the Equal Housing Opportunity logo should
appear in all of the following EXCEPT
a. real estate brokerages.
b. real estate classified newspaper advertising.
c. model home sale sites.
d. mortgage lenders’ offices.
If a broker is a little short of funds and “borrows” some money from his escrow account
to pay monthly bills, this activity is called
a. commingling and is illegal.
b. conversion and is illegal.
c. misrepresentation and may be illegal.
d. shrewd business and is legal.
The expenses, which a lender incurs while processing a mortgage loan application, are
recovered from the borrower as
a. discount points.
b. origination fees.
c. mortgage insurance premium.
d. private mortgage insurance.
The value of depreciation on an investment property is
a. inversely proportional to the investor’s tax bracket.
b. the same to all investors, regardless of their tax bracket.
c. directly proportional to the investor’s tax bracket.
d. not a factor in the investment decision.
The term CC&Rs stands for
a. covenants, condominiums and restrictions.
b. conditions, chattels and regulations.
c. commission, conditions and regulations.
d. covenants, conditions and restrictions.
If a condominium owner fails to pay his portion of maintenance fees, the response of
the owners’ association will be to
a. evict him.
b. place a lien against his unit.
c. foreclose.
d. report him to the local authorities.
A residence was listed at $100,000 and sold for 92% of that amount. The rate of
commission was 6%, and was divided equally between the selling and listing brokers.
How much did each broker get?
a. $5,520
b. $3,360
c. $5,510
d. $2,760
To transfer ownership of personal property, which document should be used?
a. Bill of sale
b. Warranty deed
c. Quitclaim deed
d. Security agreement
Who normally pays the discount points when a conventional loan is taken out to
purchase a residence?
a. Broker
b. Seller
c. Lender
d. Buyer
Tax rates may be expressed as
a. a millage rate.
b. dollars of tax per hundred dollars of valuation.
c. dollars of tax per thousand dollars of valuation.
d. any of the above.
FHLMC was formed primarily to provide a secondary market for
a. savings and loans.
b. commercial banks.
c. mortgage companies.
d. insurance companies.
As an owner of real estate, one is exposed to losses by
a. damage to the property.
b. other persons being injured on the property.
c. both a and b.
d. neither a nor b.
One of the primary reasons for the decline in loan demand at savings and loan
institutions appears to be
a. deregulation of the lending industry.
b. the poor location of many of the branch offices.
c. the high interest rates being charged by commercial banks.
d. poor supervision by regulating agencies.
Who must sign the reconveyance of a deed of trust?
a. Beneficiary
b. Trustor
c. Trustee
d. Grantee
A licensed agent must be aware of local zoning ordinances for all of the following
reasons EXCEPT
a. zoning requirements are material facts.
b. licensees must report zoning violations to the proper authorities.
c. the agent must inform his principal of the effects of zoning on his property.
d. the law of agency requires knowledge and competence regarding permitted uses of
listed property.
A single woman applied for a FHA loan to buy a property she intends to use as a rental.
Which if anything might cause her application to be denied?
a. There is no basis for denial for the application
b. She is single
c. She is a woman
d. She plans to use the property as a rental
In states recognizing tenancy by the entirety for married couples, in order to legally sell
property, a husband and wife must both sign the
a. listing and the deed.
b. earnest money agreement and the deed.
c. listing only.
d. earnest money agreement only.
In the case of a contradiction between existing zoning and new deed restrictions, which
would prevail?
a. Zoning
b. Deed restrictions
c. Whichever is the more restrictive
d. The least restrictive
A corporation that owns or leases the land and building and, in turn, leases space to its
shareholders is characteristic of a
a. condominium.
b. cooperative.
c. joint venture.
d. time share.
That which gives the appearance of title, but is not in fact title is
a. cloud of title.
b. color of title.
c. burden of title.
d. unlawful.
When a government prints more money than is necessary for economic growth, the
result is
a. a short-term drop in interest rates.
b. a long-term drop in interest rates.
c. both a and b.
d. neither a nor b.
A condominium parking stall would be considered to “run with the land” and would be
considered to be an ____________________.
Under an exclusive authority to purchase agreement, the buyer must pay the real estate
commission.
A lawsuit for _________________________ is an action in court by the innocent party
to force the breaching party to carry out the remainder of the contract according to the
precise terms, price and conditions agreed upon.
Borrower’s regular income would be most important to a lender qualifying an individual
for a residential mortgage loan.
A contract that results not from a written or oral agreement but from the actions of the
parties involved is called an expressed contract.
The best way for an appraiser to find the actual age of a residence is to check the tax
assessor’s records.
When a title defect must be removed, a quiet title suit may be the best solution.
A lease where the tenant pays a fixed rent and the landlord pays all property taxes is a
____________________ lease.
____________________ is of the ____________________ is a phrase that means that
the time limits of a contract must be faithfully observed or the contract is voidable.
The rules that govern how an owner’s association will be run are called
____________________.
To temporarily make ineffective is to ____________________.
In most states, members of the real estate commission are full-time employees
appointed by the governor.
A lawsuit, filed by the lender, requesting that a borrower’s interest in his property be cut
off is called a defeasance suit.
The objective of a graduated payment mortgage is to help borrowers pay off their loans
more rapidly.
Sylvia, as executor of a relative’s estate, realized that she had no authority to warrant
and defend the acts of previous title holders when conveying the property to the new
owners. She would probably use a special warranty deed.
A borrower has a limited right of ____________________ in a credit transaction.
Equity build-up can result from appreciation as well as debt reduction.