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 number and location of exam testing sites.
The greatest estate or ownership in real property is
a. an estate at sufferance.
b. a fee simple estate.
c. a life estate.
d. a qualified estate.
On the day of closing a real estate sale, existing property taxes and insurance are
a. left as is.
b. paid by the bank out of the reserves.
c. prorated.
d. paid in full by the seller.
A deed, which is properly completed and delivered but lacks the grantee’s signature is
a. invalid until the grantee signs.
b. invalid until recorded.
c. valid if the grantee is identified.
d. void.
An agent, in the course of listing a property, was told by the seller that he would not sell
to persons of a certain race. The agent should
a. try to change the seller’s mind.
b. refuse to take the listing with that exception.
c. take the listing and ignore the wishes of the seller.
d. inform the seller he is in violation of fair housing laws.
A valid lease must contain
a. an option.
b. the signatures of at least three parties.
c. a clean-up deposit.
d. a property description.
Which of the following could be licensed as a real estate broker?
a. A corporation
b. A partnership
c. An actual person
d. Any of the above
Land-use controls may be imposed by
a. state governments.
b. local governments.
c. subdivision developers.
d. all of the above.
A law requiring lenders to have a plan to make lendable funds available for all
low-income neighborhoods it serves as well as more affluent neighborhoods is the
a. Community Reinvestment Act.
b. Fair Housing Act of 1968.
c. Equal Credit Law of 1978
d. Presidential Order of 1970.
Which of the following may conduct a real estate brokerage business without a proper
license?
a. Members of the state bar
b. Attorneys-in-fact
c. Both a and b
d. Neither a nor b
Alice has an easement over Betty’s adjoining property. Alice sells her property to
Martha. The easement will
a. be terminated by the sale.
b. revert to Betty who may or may not grant it to Martha.
c. become public domain.
d. runs with the land and will pass to Martha automatically.
The Marketable Title Act, as presently used in the United States
a. cuts off inactive claims to rights or interests.
b. offers state-sponsored title insurance.
c. guarantees title insurance.
d. automatically renews title insurance.
A trust deed can be used for all of the following EXCEPT
a. transfer of title.
b. hypothecate property.
c. secure a note.
d. secure a mortgage.
A person appointed by a court to settle the estate of a deceased person who died
intestate is
a. an executor.
b. a legatee.
c. an administrator.
d. a devisor.
The money paid for insurance is called the insurance
a. rider.
b. endorsement.
c. peril.
d. premium.
Which of the following are designed to prevent disintermediation?
a. Adjustable rate mortgages
b. Secondary mortgage markets
c. Pass-through certificates
d. Certificates of deposit
Coverage under any homeowner policy can be extended by adding endorsements
covering
a. appreciation on the value of the property.
b. worker’s compensation.
c. both a and b.
d. neither a nor b.
A strip of land that separates one land use from another is called a
a. buffer zone.
b. median strip.
c. non-use zone.
d. restricted zone.
When a home owner feels his property has been assessed too high and files an appeal,
the burden of proof is on the
a. appraiser chosen by the home owner.
b. assessor’s staff appraiser.
c. homeowner.
d. county supervisor.
Zoning is
a. a power originating from the sovereign state governments.
b. exercised to regulate types of uses, use densities, subdivision requirements, and racial
and ethnic quotas.
c. exercised by building inspectors.
d. little used and of declining importance in real estate.
Title to real property will most likely transfer when the deed is
a. delivered but not signed.
b. signed by the grantor but not delivered.
c. recorded but not delivered.
d. executed and recorded.
The requirement that transfers of real property be in writing is known as
a. contract law.
b. the bill of rights.
c. the statute of frauds.
d. due process.
Under the terms of a normal net lease, the lessee is responsible for all of the following
EXCEPT
a. mortgage payments.
b. repairs.
c. water bills.
d. taxes.
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.
Notice of ownership given by one’s presence on his land is called
a. constructive notice.
b. public notice.
c. inquiry notice.
d. attendant notice.
Two persons make an oral agreement. A day later they put it in writing with several
small changes. What is true about the agreement in a court of law?
a. The oral one would prevail
b. The written one would prevail
c. A new agreement must be made
d. The agreement must be notarized to be legal
A mortgagee in a lien theory state holds
a. legal title.
b. a note.
c. naked title.
d. naked legal title.
A tenant in common
a. has survivorship rights.
b. can sell his interest and bind his co-tenants.
c. cannot sell his interest without the consent of his co-tenants.
d. can sell his interest separately.
For what price must a house sell if the seller is to net $30,000 after paying $1,500 in
settlement and the broker’s commission of 6% (rounded to the nearest dollar)?
a. $30,000
b. $32,011
c. $32,300
d. $33,511
Within a condominium development, common elements are owned by
a. the owner’s association.
b. all unit owners, who hold undivided interests in the elements.
c. the condominium developer.
d. individual unit owners as community property.
A negative cash flow may be offset by
a. tax shelter.
b. appreciation.
c. both a and b.
d. neither a nor b.
Which of the following are considered to be real estate?
a. Trade Fixtures
b. Emblements
c. Mulberry bush
d. Garden hose
When a borrower gets behind on his loan payments, the lender could call for the entire
balance due immediately based on the
a. alienation clause.
b. acceleration clause.
c. subordination clause.
d. pre-payment clause.
If an existing escrow is to be canceled, it must be done
a. only by the buyer.
b. by mutual rescission.
c. by either party.
d. only by the seller.
When a seller wishes to convey title by means of a statutory deed form, the salesperson
a. can advise the seller which deed form to use.
b. can advise seller to obtain the services of a lawyer.
c. can advise the buyer which tenancy to use.
d. can fill it out for the buyer.
Real Estate Investment Trusts (REITs) pool the money of many investors for the
purchase of real estate, much as mutual funds do with stocks and bonds.
The duty of ____________________ care implies competence and expertise on the part
of the broker.
Most real estate investors shun corporations because of the double taxation feature and
because the tax benefits of owning real estate are trapped inside the corporation.
To determine benefits, a veteran should make application to the Department of Veteran
Affairs for a certificate of ____________________.
A buyer’s broker would use an exclusive right to ____________________ listing
agreement.
A trust deed can be used to secure a mortgage.
With the ____________________ payment mortgage, the interest rate and maturity are
fixed but the monthly payment gradually rises.
The future demand for housing as seen by looking at the population and the ability of
people to obtain income at various age levels is known as ____________________
demand.
A title defect is also known as a title ____________________.
When making a mortgage loan application, borrowers are protected from discrimination
based on marital status by the Fair Credit Reporting Act.
An easement appurtenant passes with the title to the dominant estate.
When an adverse claimant tacks on his period of possession to that of a prior adverse
occupant, this is called tacking.
The federal government has authorized electronic signatures and documents.
In evaluating the borrower’s life insurance, the ____________________ is the amount
of money the policy holder would receive if the policy were surrendered to the
insurance company.
A mortgage can be foreclosed judicially.
Through the Federal Reserve Banks, the Federal Reserve Board can create money but
cannot destroy money.