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 public improvement is most appropriately financed by
a. general property taxes.
b. an improvement district.
c. an assessment district.
d. federal income taxes.
Adjustments for advantageous financing would be made in the
a. market comparison approach to appraisal.
b. cost approach to appraisal.
c. income approach to appraisal.
d. revised market price.
An office building is on a lot valued at $50,000. It would cost $150,000 to replace the
building structure today, but the improvements have depreciated 10%. Using the cost
approach, what is the value of the property?
a. $50,000
b. $152,000
c. $160,000
d. $185,000
A newly recorded trust deed
a. conveys the entire estate to the grantee.
b. always allows a deficiency judgement.
c. establishes a voluntary lien.
d. conveys title superior to a quitclaim deed.
One of the major differences between a regular mortgage and a deed of trust is
a. a mortgage hypothecates personal property.
b. a deed of trust must be recorded.
c. the redemption period allowed.
d. there is no difference.
The most widely recognized aspect of joint tenancy is the
a. right of equal interest.
b. right of equal use.
c. right of survivorship.
d. simultaneous creation of ownership.
A white woman owned a duplex and lived in half and rented out the other half. She put
a “For Rent” sign in the front yard. The first applicant was a black man whom she
turned down stating that she didn’t rent to men. He later learned that she had rented the
unit to a white male. Under the circumstances, the first applicant has
a. a discrimination case based on the 1968 Fair Housing laws.
b. a discrimination case based on the Civil Rights Act of 1866.
c. no recourse since the building is owner occupied.
d. access to HUD legal assistance while he files his case.
A parcel of land measuring 1,320″ x 660″ would contain how much land?
a. 10 acres
b. 20 acres
c. 30 acres
d. 40 acres
When a listing is taken, the seller would be referred to as
a. the customer.
b. a fiduciary.
c. the client.
d. the agent.
Taxes become a lien
a. in advance.
b. only when delinquent.
c. in arrears.
d. when an assessment appeal is filed.
Dual agency results when
a. abroker represents a buyer and writes an offer on his own listing.
b. a broker presents an offer on any listing.
c. an outside agent presents an offer on a broker” listing.
d. a buyer works with more than one broker.
The seller has just sold her home and received a closing statement and the balance due
to her. Presuming no agreement to the contrary, which of the following should have
been charged to the buyer?
a. Proration of taxes with a debit to the seller for the tax year up to closing
b. Recording fee for the deed prepared by the sellers’ attorney
c. Sales commission
d. Amount required to pay off the seller’s loan
The assessment ratio of real property in a community may be
a. 100 percent of its appraised value.
b. more than its fair market value.
c. more than its appraised value.
d. any of the above.
Which entity would be most likely to hold an easement in gross?
a. Adjacent property owner
b. A power company
c. A tenant at will
d. A corporation on the same road
A buyer making an offer on a property writes an earnest money check to the broker. The
seller will not be available for 5 days. What should the broker do with the check?
a. Attach it to the offer in the file
b. Mail it with the offer to the seller
c. Hold the check until the contract has been signed by all parties
d. Hold it until the seller returns home
Compared to a warranty deed, the covenants and warranties found in a grant deed are
a. fewer in number.
b. broader in coverage.
c. more restrictive.
d. greater in number.
Which of the following ratios of monthly payment to monthly income would be
preferred by a residential lender?
a. 25%
b. 55%
c. 65%
d. 75%
A 9% amortized loan with a November 1 balance of $40,000 requires the payment of
principal and interest at the first of each month. If prorating is done as of the 20thof
November, the
a. buyer owes the seller $100.
b. buyer owes the seller $200.
c. seller owes the buyer $100.
d. seller owes the buyer $200.
The owners’ association of a condominium meets yearly and makes such changes in the
operation of the common elements as is deemed best for all owners. It can change or
amend all of the following EXCEPT
a. deeds to owners’ units.
b. fire insurance carrier.
c. bylaws.
d. restriction against rental of units.
An easement by prescription may be created by
a. payment of taxes.
b. the dominant tenement.
c. the party benefiting from the easement.
d. continuous use.
If an investor uses $250,000 of his own money when buying a $500,000 building, he is
using
a. 50% leverage.
b. 100% leverage.
c. 200% leverage.
d. capital gains.
Which of the following specializes in making loans and reselling them?
a. FNMA
b. Mortgage brokers
c. Mortgage bankers
d. VA
A deed grants a parcel of land to Betty and Art, with no further distinction as to tenancy.
Betty and Art would own the property as
a. joint tenants.
b. community property.
c. partners.
d. tenants in common.
State and local laws that restrict or prohibit discrimination in the availability of rental
housing may
a. be more restrictive than federal statutes.
b. prohibit additional forms of discrimination.
c. both a and b.
d. neither a nor b.
Upon termination of a rental contract,
a. ownership reverts to the lessor.
b. possession is returned to the lessor.
c. possession is returned to the lessee.
d. ownership reverts to the lessee.
Condominiums developments are restricted to
a. residential dwelling units.
b. multiple-unit buildings.
c. both a and b.
d. neither a nor b.
A tenant will know in advance how much his rent will be at any time during the lease
under a
a. gross lease.
b. percentage lease.
c. pass through lease.
d. participation.
Typically, most families acquire their largest and most expensive housing between ages
a. 25 to 35.
b. 45 to 55.
c. 35 to 45.
d. over age 60.
Title that is free from reasonable doubt as to who is the owner and his ability to convey
the property, is called
a. marketable title.
b. cloudy title.
c. naked title.
d. colorful title.
Which of the following specializes in bringing lenders and borrowers together without
lending their own money?
a. Insurance companies
b. Mortgage bankers
c. Mortgage brokers
d. Commercial banks
From the broker’s point of view, one of the least desirable listings is an
a. net listing.
b. exclusive right to sell.
c. open listing.
d. exclusive agency listing.
With regard to real property estates, tenancy in common refers to
a. occupancy by 2 or more persons.
b. ownership.
c. survivorship.
d. community property.
Which government loan program will make direct loans if a qualified borrower cannot
find a lender?
a. FHA
b. VA
c. CRV
d. HUD
ARM loans with teaser rates are avoided by
a. mortgage insurers.
b. secondary market buyers.
c. both a and b.
d. neither a nor b.
When monthly payments are not sufficient to pay the interest due and the difference is
added to the loan balance, this is called ____________________ amortization.
Blockbusting is the illegal practice of inducing ____________________ selling in a
neighborhood for financial gain.
For a deed to convey title to real property, it must contain the legal description of the
property.
A ____________________ eviction is one whereby a landlord evicts a tenant because
of a complaint made by the tenant.
The Fair Housing Law of 1968 applies to single family and multi-family housing.
A person interested in a property is held by law to be responsible for making further
inquiry of anyone giving visible or recorded notice. This is called “inquiry notice.”
Policies that cover a large number of named perils are known as
____________________ form policies (HO-2).
Through the unauthorized occupation of another person’s land for a long enough period
of time, it is possible to acquire ownership by _________________________.
Automated underwriting systems have dramatically overhauled the mortgage loan
underwriting process.
Generally, a property owner is liable when there exists a legal duty to exercise
reasonable care and the property owner fails to do so.
A(n) ____________________ allows an individual landowner to vary from zoning
requirements.
Under the Torrens system, once a title is registered , any subsequent liens or
encumbrances against it must be entered on the registrar’s copy in order to give
constructive notice.
One acre contains most nearly 42,000 square feet.
A joint venture is a partnership to carry out numerous business projects.
In an escrow closing, the escrow agent serves as agent for the buyer.
The existence of a base industry is essential to the economic health of a community.
In the event of default by the buyer the seller may sue for specific performance but not
for money damages.
An “all-risk” homeowner policy (HO-C) does not include coverage for damage
resulting from war or nuclear accident.
The conversion of future income into present value is known as hypothecation.