A real estate listing is a contract between
a. the owner and the listing broker.
b. the owner, the broker, and the listing salesperson.
c. the owner and the listing salesperson.
d. the broker and the listing salesperson.
A change in zoning for a parcel of land from single-family dwellings to apartment use
requires a
a. zoning ordinance amendment.
b. variance.
c. zoning release.
d. release of deed restrictions.
An executory contract is a
a. contract which has been completely executed.
b. contract in which certain things are still to be done.
c. will in probate for which an executor has been named.
d. contract which has not been signed.
Good land use planning requires a long-range master plan. Which of the following is
LEAST essential for any good master plan?
a. Physical and economic surveys of the whole subdivision
b. Long-range continuity provisions
c. Provisions for the eventual transition to commercial development
d. A balance between the economic and social needs of the community
The purpose of a trust account is to
a. hold money belonging to clients and customers.
b. assure that a broker can be trusted.
c. to act as a neutral depository.
d. convert client’s money to broker’s account.
Freddie Mac was originally formed to provide a secondary mortgage market facility for
the
a. Federal National Mortgage Association.
b. Government National Mortgage Association.
c. Federal Home Loan Bank Board.
d. Mortgage Guaranty Insurance Corporation.
A buyer agreed to put down $5,000 as earnest money toward a house he was buying for
$97,000. The offer was based upon receipt of an 80% loan from a bank. The attorney’s
fees were $2,000 and all other buyer costs amounted to $1,500. How much money will
the buyer need to pay at settlement?
a. $14,400
b. $17,900
c. $17,700
d. $22,900
A condominium owner can obtain all of the following EXCEPT
a. severalty ownership of his share of the common elements.
b. title insurance on his nit.
c. a separate mortgage.
d. joint tenancy ownership of his unit.
A seller received a net amount of $29,817 after paying off a $53,000 loan balance,
$1,213 in miscellaneous costs, and a 7% brokerage fee. What was the sale price of the
house? (round to nearest dollar)
a. $77,020
b. $84,030
c. $90,355
d. $90,360
The entity that purchases the most loans in the secondary market is
a. FNMA.
b. FHLMC.
c. HUD.
d. GNMA.
All of the following benefit from property taxes EXCEPT
a. school budget.
b. municipal stadium.
c. public libraries.
d. parks.
The liability coverage of a homeowner policy
a. applies to the insured premises.
b. provides protection away from the premises.
c. both a and b.
d. neither a nor b.
With regard to a deed of trust, the trustee
a. can be the beneficiary.
b. receives recorded title.
c. receives equitable title.
d. receives naked title.
Using the rule of thumb used by lenders (each point charged raises the yield by 1/8 of
1%), 4 discount points raise the effective yield of a typical home loan by
a. 1/32 of 1%.
b. 2/8 of 1%.
c. 1/4of 1%.
d. 1/2 of 1%.
When one broker lists a property, another broker sells it, and they split the commission
between them, it is called
a. broker competition.
b. broker cooperation.
c. a pocket listing.
d. a mutual listing.
The actual passage of title occurs when the deed is
a. acknowledged and recorded.
b. signed and acknowledged.
c. delivered and accepted.
d. executed by the grantor.
A builder bought all 20 lots in a subdivision from the developer, who carried most of
the purchase price on one loan. To sell the lots, he must include a
a. reverse loan clause.
b. sale-lease back clause.
c. package mortgage clause.
d. partial release clause.
Pat has a license and contractual rights to sell real estate in a typical state. This licensee
may be presumed to be all of the following EXCEPT
a. an agent or subagent.
b. a licensee.
c. a broker or salesperson.
d. a REALTOR.
An acknowledgement can be witnessed by a notary public
a. in person.
b. by mail.
c. by fax.
d. by proxy.
An easement may be cancelled by all of the following EXCEPT
a. the servient tenement.
b. the dominant tenement.
c. acquiring both lots.
d. prescription.
Denise applied for a permit to build a greenhouse in her back yard. Her request was
denied because of setback requirements. She appealed at a hearing before the planning
board and subsequently had her permit approved. Denise obtained
a. a variance.
b. an offset deed.
c. a plat approval.
d. an encroachment permit.
Under a deed of trust, reconveyance is issued by the
a. beneficiary.
b. trustor.
c. trustee.
d. borrower.
The American Institute of Real Estate Appraisers issues the
a. GRI designation.
b. MAI designation.
c. CPM designation.
d. MIA designation.
All of the following are prohibited by the Fair Housing Law of 1968, as amended,
EXCEPT
a. discrimination in advertising.
b. denial of availability of housing on the basis of religion.
c. discrimination in terms or conditions for sale or rent.
d. discrimination on the basis of age.
Betty is six months behind on her mortgage payments. Foreclosure by public auction
has been ordered. The sale has not been completed. Betty may redeem her property by
paying the
a. last six months payments.
b. full amount of the loan balance.
c. loan balance plus accrued interest.
d. loan balance, accrued interest and the accumulated cost of the foreclosure action and
sale.
A settlement meeting may take place in the offices of
a. the real estate agent.
b. an attorney.
c. a title company.
d. any of the above.
When too much money chases too few goods, it is known as
a. cost-push inflation.
b. demand-pull inflation.
c. real-cost inflation.
d. deflation.
The instrument which conveys naked title to a trustee is the
a. notice of default.
b. reconveyance deed.
c. guardian’s deed.
d. trust deed.
When the prospective tenant signed the lease, he indicated that he would be using the
building to sell appliances. Later, the landlord discovered that illegal bingo games were
being played there. What can the landlord do?
a. He can do nothing as long as the tenant is current with the rent.
b. He can declare the lease void and start eviction proceedings.
c. He must have a conversation with the tenant to try to persuade him to stop the illegal
activity.
d. He can organize a boycott.
Commercial banks are most likely to deal heavily in
a. house boat loans.
b. mobile home purchase loans.
c. construction loans.
d. residential home loans.
Computerized Loan Origination (CLO) programs are available to
a. mortgage brokers.
b. real estate brokers.
c. attorneys.
d. all of the above.
When the property being sold is an investment contract in real estate rather than real
estate itself, the broker may be required to have a securities license in addition to a real
estate license.
A ____________________ is a person or legal entity license to act independently in
conducting a real estate brokerage business.
Compared to new construction, a condominium ____________________ is often
simpler, faster, and more profitable to the developer.
In analyzing a mortgage loan application, a lender considers job stability, income
adequacy and sales price.
A real estate ____________________ is a state board that advises and sets policies
regarding real estate licensees and transaction procedures.
Minimum standards for materials and construction of buildings are set by building
codes.
Upon termination of a rental contract, ownership reverts to the lessor.
The sale of an appreciated property structured to spread out the payment of income
taxes on the gain is called the installment method.
The right to collect rents in the event of default is called a(n) ____________________
of ____________________ clause.
Under an installment sale, the seller is known as the ____________________ and the
buyer is known as the ____________________.
The appropriation appeals board hears complaints from property owners regarding their
assessments.
The purpose of a settlement statement is to provide an accounting of all funds involved
in a transaction.
Walter has reserved the right, for a specific period of time, to buy Helen’s house. Walter
gave Helen a $500 deposit for this right. This transaction most likely involves an
option.
A gift deed conveys legal title.
The employment ____________________ describes the number of people employed in
local service industries as a function of the number of people employed in a base
industry.
With tenants in common, if nothing is said regarding the size of each co-owner’s
interest, the law presumes that all interests are equal.