An agent’s authority may be granted by
a. written agreement.
b. custom in the industry.
c. both a and b.
d. neither a nor b.
Rules governing how a condominium owners’ association will be run would be found in
the
a. master deed.
b. CC&Rs.
c. bylaws.
d. house rules.
The term “undivided interest” means
a. each co-owner has the right to use the entire property.
b. when one co-owner dies, the remaining co-owners acquire his interest.
c. the property has not previously been sold.
d. no co-owner can sell his interest.
A lease is an example of a
a. non-contractual agreement.
b. declaration of intent.
c. unilateral contract.
d. bilateral contract.
In a graduated payment mortgage, the graduated part is the
a. interest rate.
b. monthly payment.
c. maturity date.
d. entire loan is graduated.
The inflation guard endorsements are available and automatically increase property
damage coverage by
a. 1.5%
b. 2%
c. 2.5%
d. all of the above.
A property owner leases a house to a tenant until a buyer is found for the house. Such a
tenancy is called a
a. periodic tenancy.
b. tenancy at will.
c. tenancy in common.
d. tenancy for years.
Property owned in severalty
a. is owned concurrently by at least two persons.
b. cannot be sold without the consent of several owners.
c. is an estate of inheritance.
d. may be willed.
A homeowner’s insurance policy will NOT protect against which of the following?
a. Public liability directly connected with the insured property.
b. Damage to household goods contained in the insured premises.
c. Flood damage to the insured premises.
d. Theft of personal property.
On a $64,000 home, which of the following would require the largest cash down
payment?
a. FHA-insured loan
b. 80% loan-to-value conventional loan
c. 90% loan-to-value conventional
d. 100% DVA loan
Under the Fair Housing Law of 1968, apartment managers may discriminate against
which of the following categories of people?
a. Pet owners
b. Females
c. American Indians
d. White Anglo-Saxon Protestants
The post-World War II baby boom includes persons aged
a. 30 to 40 in 1960.
b. 35 to 40 in 1985.
c. 50 to 60 in 1980.
d. none of the above.
When a property is mortgaged to a lending institution, the lender will usually require
the owner to provide
a. fire and extended coverage on structures.
b. personal property coverage.
c. medical payment coverage.
d. liability coverage.
Under a deed of trust on real property, the trustee is
a. the owner of record of the property covered by the deed of trust.
b. empowered to foreclose, upon notice of default, by a trustee’s sale of the property.
c. the equitable owner of the property.
d. the holder of the grant deed.
An apartment building sells for $600,000 and has a gross rent multiplier of 6.0. how
much annual rent does the building produce?
a. $60,000
b. $100,000
c. $10,000
d. $36,000
Covenants or warranties are found in all of the following EXCEPT
a. special warrant deeds.
b. quitclaim deeds.
c. general warranty deeds.
d. grant deeds.
In which states are licensing examinations required for a real estate license?
a. Only the western states
b. All but the New England states
c. All but Texas, Hawaii and Alaska
d. Every state
A parcel of land contains 1,020 square yards. The front foot measurement is 80″. How
deep is the parcel.
a. 114.75″
b. 38.25″
c. 127.5″
d. 816″
Which of the following is usually a private decision and unaffected by zoning
regulations?
a. Setback requirements
b. Nonconforming uses
c. Variances
d. House color
A deed of trust conveys naked title to the
a. beneficiary.
b. trustor.
c. trustee.
d. escrow officer.
One can transfer title to real property by all of the following EXCEPT
a. quitclaim deed.
b. deed to a minor.
c. alienation.
d. trust deed.
A broker is preparing an original real estate sales contract for a buyer and seller. Whom
may he lawfully charge for this service?
a. Buyer
b. Seller
c. Buyer and seller
d. No one
Which of the following is a result of one’s land area being increased by receding water?
a. Reliction
b. Alluvion
c. Avulsion
d. Erosion
An elderly couple is “house rich, money poor”. To obtain money now while still living
in their magnificent home, they should look for a
a. negative amortization.
b. an adjustable rate mortgage.
c. a reverse annuity mortgage.
d. a graduated payment mortgage.
A house sells for $102,000 and is appraised at $100,000 by a lender who is willing to
make a 75% loan-to-value loan. How much down payment will this house require?
a. $25,500
b. $27,000
c. $75,000
d. $76,500
Prior to the introduction of adjustable rate mortgages, the FHLBB approved the use of
a. variable rate mortgages.
b. renegotiable rate mortgages.
c. both a and b.
d. neither a or b.
Local residents may best gain control over the future development of their community
by paying attention to
a. land use covenants.
b. eminent domain purchases by private individuals.
c. restricting the trade of developers and real estate agents.
d. public zoning decisions.
A loan arrangement whereby a lender extends a line of credit is
a. a buy-down mortgage.
b. an open-end mortgage.
c. a wraparound mortgage.
d. a purchase money mortgage.
Property taxes are characteristic of the
a. allodial system of land ownership.
b. feudal system of land ownership.
c. Napoleonic system of land ownership.
d. English common system of land ownership.
A cultivated crop, not yet harvested, should be carefully noted on a listing agreement
because
a. appurtenances will not pass with the land.
b. the right to harvest belongs to the owner of the land.
c. emblements belong to the person who plants and cultivates them.
d. growing things are affixed to the soil.
The limited partnership has become popular as a means of owning real estate because
of
a. limited ability to finance large properties.
b. maximum management responsibility.
c. direct pass-through of profits.
d. unlimited liability.
____________________ obsolescence is he loss of value due to external forces or
events.
In a real estate transaction financed with a deed of trust, the real property is conveyed
by the deed of trust.
A power of sale in a mortgage gives the lender the power to take ownership and sell the
mortgaged property without taking the issue to court.
Over a period of years, there will be periods of rapid price changes mixed with periods
of mild price changes.
Farmer Mac was created to provide a secondary market for farm loans.
A home sells for $150,000 but is appraised by a lender for $145,000. The lender will
typically apply the loan-to-value ratio to the larger of the two numbers.
A leasehold estate, which may be ____________________ by either party at any time,
is an estate from period to period.
When local budgets along with a list of sources from which the money will be derived,
is enacted into law, it is called the ____________________ process.
Traditionally, the resale of cooperative shares has been financed by means of second
mortgages on the seller’s unit.
At the same time that a lawsuit is filled with the court, a notice of lis pendens is also
filed with the court.
In some states, the board of ____________________ performs the task of equalizing
assessment procedures between counties.
The Fair Credit Reporting Act gives individuals the right to correct any errors on their
report, inspect their file at a credit bureau and delete any reference to bankruptcy.
A tester is an individual or organization that responds to advertising and visits real
estate offices to test for compliance with fair housing laws.
A dramatic increase in the birth rate will have an immediate effect on the demand for
housing but will have no long-range effect.
Under the feudal system of land ownership, the responsibility for providing services,
determining land use, etc., was held by the king.
A lessee of a book store may legally remove his bookshelves at any time before the
lease expires.
A limited partnership wherein properties are purchased after the limited partners have
invested their money is called a ____________________ pool partnership.
The basic concept of community property law is that the husband and wife are merged
into one by marriage.
A flat-fee broker is an example of a ____________________ broker.