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Generally, for every job created by a base industry, there will be created in service
industries approximately
a. an equal number of jobs.
b. two jobs.
c. one job for every two persons employed in the base industry.
d. four jobs.
Which appraisal method would be most useful in appraising an unusual building which
has a very limited and specific use?
a. Cost approach
b. Net income
c. Capitalization
d. Market comparison
One may find financing for a single family dwelling at all of the following EXCEPT
a. savings and loans.
b. commercial banks.
c. insurance companies.
d. mortgage bankers.
Which of the following sources provides the most home mortgage money in the United
States?
a. Mutual savings banks
b. Commercial banks
c. Credit unions
d. Mortgage companies
At the time the expiration of an option to purchase, the optionee
a. can request his deposit back.
b. can renew the option or the same time period and terms.
c. can repossess the property.
d. forfeits his option money if he doesn"t buy the property.
The best determinant of whether an item is real or personal property is
a. the intent of the parties.
b. its size and weight.
c. its value.
d. the appraiser's opinion.
In whose name does a salesperson take a listing?
a. His broker's
b. His own name
c. The seller's
d. The Real Estate Commission
Deed delivery in an escrow is accomplished by
a. the escrow holder accepting the deed on behalf of the grantee.
b. delivery of the deed by the escrow holder to the grantor.
c. a courier service.
d. the title company.
The surviving co-owner may automatically inherit the deceased co-owner's share when
the property is held
a. as tenancy in common.
b. in severalty.
c. as a trust.
d. as tenancy by the entirely.
That a dollar should be invested only when it will return more than a dollar's worth of
benefits is called the principle of
a. conformity.
b. supply and demand.
c. contribution.
d. highest and best use.
The government receives the authority to take the property of one who dies without a
will and without heirs by virtue of
a. laws of agency.
b. eminent domain.
c. police power.
d. escheat.
If a real estate agent used clients' funds for his own personal use, he would be guilty of
a. commingling.
b. conversion.
c. duress.
d. misrepresentation.
Which of he following would defeat a claim of adverse possession?
a. A permission to enter
b. Exclusive occupancy
c. Visible possession
d. Continuous possession
Once the original developer is no longer involved in a subdivision, the deed restrictions
are enforced by
a. the local police.
b. the homeowner's association.
c. majority vote.
d. zoning.
Which of the following loans would be exempt from the disclosure requirements of the
truth-in-lending laws?
a. An unsecured personal loan of $3,000
b. An educational loan from a commercial bank
c. A second mortgage loan on a residence
d. A $30,000 loan for the purchase of a $40,000 automobile
Individual ownerships of separate portions of a building plus joint ownership of the
common elements is characteristic of a
a. condominium.
b. cooperative.
c. co-op.
d. PUD.
When a loan is secured by deed of trust, the promissory note is held by the
a. beneficiary.
b. trustor.
c. trustee.
d. grantee.
An urban homeowner wishing to add a second story onto his existing home would most
likely have to
a. get the approval of the first mortgagee.
b. get the approval of the first and second mortgagee.
c. seek a building permit.
d. carry enough insurance to cover the new value.
Which of the following operating expense ratios indicate one dollar of total operating
expenses for every two dollars of effective gross income?
a. 33.3%
b. 50%
c. 200%
d. 25%
A metes and bounds survey begins at the point of beginning and ends at the
a. last benchmark.
b. point of beginning.
c. first monument used.
d. datum.
The broker is helping the home buyer obtain the lowest possible price. As agent for the
buyer, the broker and the buyer have probably signed an agreement called
a. an exclusive right to sell listing.
b. an exclusive authority to purchase agreement.
c. an open listing.
d. a net listing.
The amount of commission to be paid the broker for selling a property is
a. set by law.
b. negotiated at the time a buyer is found.
c. set forth in the rules of the state real estate commission.
d. stated in the listing contract.
Agents who are authorized to bind their employer in a trade or business are
a. special agents.
b. general agents.
c. exclusive agents.
d. principal agents.
A title report usually includes all of the following EXCEPT
a. the property description.
b. the conditions of the purchase agreement for this sale.
c. a list of recorded objections for claims to title.
d. a statement that there could be unrecorded matters that encumber title.
If a borrower paid $3,550 in points on a loan of $95,000 how many points were
charged?
a. .003 points
b. .3 points
c. 3 points
d. 3.7 points
A purchaser took out a $50,000 new discount mortgage when he bought his home. The
lender charged 2 discount points. On which amount will the mortgagor be paying
interest the first month?
a. $49,000
b. $50,000
c. $51,000
d. $56,000
Which is an example of pledged property?
a. Estoppel
b. Covenant
c. Dedication deed
d. Real estate given as security
The words "grant and release" in a deed are words of
a. conveyance.
b. covenant.
c. acknowledgement.
d. alienation.
The rules by which an owner's association operates are known as
a. bylaws.
b. covenants, conditions, and restrictions.
c. house rules.
d. ordinances.
An amendment to the Fair Housing Law of 1968, signed by the president in 1968,
prohibits
a. discrimination on the basis of physical handicap.
b. the offering of different loan terms by commercial lenders based on race or religion
of the loan applicant.
c. refusal to sell, rent, or negotiate with any person.
d. steering and blockbusting.
Discrimination in the availability of housing on the basis of race is prohibited by the
a. Civil Rights Act of 1866.
b. Fair Housing Law of 1968.
c. both a and b.
d. neither a nor b.
The income tax savings that an investment can produce for its owner is called a tax
____________________.
A fee or tax on deeds and other documents payable at the time of recordation is known
as a special assessment fee.
In real estate, the word "convey" means to transfer.
A farmer owns a 60 acre farm planted in potatoes. The potatoes are always personal
property.
It might constitute commingling if a buyer's earnest money check is made out to the
sales agent.
Typical duties of a licensed real estate property manager includescreening tenants,
maintaining deposit accounts and routine maintenance.
The type of lien used by someone who does work or supplies materials for a home and
has not been paid is called a mechanic's lien.
From the viewpoint of a qualified appraiser, the value of the subject property is most
affected by its highest and best use.
The sale of timeshares is regulated in about 25 states by state legislation.
When a municipality regulates a property to where it has no value or, in some cases, has
no remaining economic value it is considered a ____________________.
People record deeds to provide constructive notice to the world.
The person who conveys a life estate to a life tenant controls who receives
____________________ after the death of the life tenant.
A rider is any addition annexed to a document and made part of the document by
reference.
The relationship between the amount of money a lender is willing to loan and192 the
lender's estimate of _________________________ of the property that will serve as
security is called the loan-to-value ratio.
A point of beginning must be included in a metes and bounds land description.
In a partnership, the risk of losing one's money is referred to as a
____________________ risk.
A lease cannot be assigned.
A listing is a contract between a property owner and the salesperson taking the listing.
A person who brings two or more parties together but does not represent either party is
known as a ____________________.
