The difference between a variance and a nonconforming use is that
a. a variance changes the permitted use; nonconforming use does not.
b. nonconforming use changes zoning; a variance does not.
c. the nonconforming use first occurs after the zoning changes.
d. the variance was in effect before the zoning.
Generally, before a lender will approve a loan, the borrower must
a. have sufficient funds for the down payment.
b. sign a statement if the borrower intends to occupy the property.
c. both a and b.
d. neither a nor b.
An instrument effecting the title to a parcel of real estate gives constructive notice to the
world when it is recorded with the
a. county recorder.
b. city clerk.
c. real estate commissioner.
d. title insurance company.
A dual agency
a. is unlawful.
b. is legal but unethical.
c. must be disclosed to all parties.
d. requires a permit from the real estate commissioner.
A lender can legally discriminate in loan terms based on the applicant’s
a. religion.
b. marital status.
c. race or skin color.
d. intention to occupy (or not occupy) the mortgaged property.
The illegal practice of inducing panic selling in a neighborhood for financial gain is
called
a. steering.
b. block busting.
c. testing.
d. discrimination.
Two investors buy a house for use as a rental property. Their accountant tells them they
can deduct depreciation on 80% of the $76,000 value over 27 1/2 years. How much can
they deduct in the third year of ownership?
a. $2,211
b. $4,422
c. $6,633
d. $6,756
When the appraiser has decided to use the market approach, which of the following
conditions would disqualify a sale as a fair market value transaction?
a. Low down payment followed by below-average interest rates on the balance due
b. Seller who was not in a hurry to sell
c. VA sale
d. Neighbor’s house sold for a higher amount
A broker lists a property and gets a sum from the seller as an advance deposit against
the hours he spends marketing the property. This is called
a. a net listing.
b. an exclusive right to sell listing.
c. an advanced fee listing.
d. an open listing.
Once a broker has taken a listing, he can do all of the following EXCEPT
a. allow his sales staff to make an offer on the property without informing the seller of
the identity ofthe purchasers.
b. put up a sign.
c. buy it himself.
d. stand on the street corners soliciting buyers for the property.
In order to keep prices from falling in an economy that is growing at a 4 percent rate,
which of the following is necessary?
a. A 4% decrease in the money supply
b. A constant, unchanging money supply
c. A 2% increase in the money supply
d. A 4% increase in the money supply
Plottage is likely to have which of the following results?
a. Raising the tax bill
b. Raising the tax rate
c. Accelerating the lien date
d. Lowering the tax bill
A landowner can break an adverse claim by all of the following EXCEPT
a. forcibly removing the adverse occupant.
b. giving the adverse occupant permission to stay.
c. preventing the trespassers from entering.
d. observing the adverse occupant.
Truth in lending laws were created primarily to protect
a. consumers.
b. lenders.
c. beneficiaries.
d. mortgagees.
Taxes on real property are levied
a. on an ad valorem basis.
b. according to the value of the property.
c. both a and b.
d. neither a nor b.
Most title insurance does not insure against
a. public records.
b. unrecorded liens.
c. easements of record.
d. encumbrances of record.
Of the following parties to a mortgage, whose interest is benefited by an acceleration
clause?
a. The mortgagor
b. The mortgagee
c. A future owner
d. The trustee
In order to create a condominium development, a developer may
a. construct a new building.
b. convert an existing building.
c. both a and b.
d. neither a nor b.
In a brokered real estate transaction, the amount of earnest money is determined by the
a. buyer.
b. seller.
c. by agreement between the buyer and seller.
d. by agreement between the buyer and broker.
A final loan payment that is larger than previous payments is called a
a. balloon payment.
b. budget payment.
c. terminal payment.
d. graduated payment.
A broker has an exclusive right to sell listing with the sellers. The broker brings an offer
to buy at the seller’s asking price and terms from a capable buyer. At what point has the
broker earned her commission?
a. At the close of escrow
b. Upon presentation of the offer
c. Upon acceptance of the offer
d. Upon qualification of the buyer
The problem with net listings is that
a. the seller is assured of receiving the net amount he specifies.
b. the broker receives a higher than average commission.
c. the broker does not have to submit the offer to the seller if the offer is too low.
d. there could be a conflict of interest if dealing with an inexperienced seller.
Which of the following listings provides the least protection of the broker’s interests?
a. Net listing
b. Exclusive right to sell
c. Open listing
d. Exclusive agency listing
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.
Which of the following is exempt from 1968 Fair Housing Law?
a. Single family residences using a real estate broker to sell
b. Multifamily dwellings of 5 or more units
c. Property owned by a private club for its members’ non-commercial use
d. Single family residences not owned by private individuals
How is the priority of property tax liens established?
a. By the county tax assessor’s decision which is final
b. By the amount of the lien compared to others
c. They have priority no matter when recorded
d. By the date of recording
Which of the following is more likely to be the LEAST demanding of appreciation
potential in the ownership of real estate?
a. The owner of a rental residence
b. An owner who occupies a property as a principal
c. A business which owns apartment buildings
d. A corporation which owns office buildings
Which of the following forms of property ownership offers the greatest flexibility for
the investor wishing to sell his interest?
a. Limited partnership
b. Joint tenancy
c. Ownership in severalty
d. General partnership
In analyzing a mortgage loan application, it is illegal for a lender to consider
a. job stability.
b. marital status.
c. income adequacy.
d. credit rating.
The listing salesperson was told by a prospective buyer to present an offer of $150,000
with the promise that he would increase it to $152,000 if the seller rejected $150,000.
The salesperson must
a. present the offer and disclose the promise to increase the offer.
b. keep the confidence of his buyer while presenting the $150,000 offer.
c. refuse to present the offer.
d. tell her broker of the verbal part of the offer.
According to the Real Estate Settlement and Procedures Act, which of the following is
illegal?
a. Examination of the HUD settlement statement the day before closing
b. Payment of kickbacks
c. Delivery of the closing statement on the day of closing
d. Disbursement of commission fees
All states have passed condominium laws that are variously known as a state’s
horizontal property act, strata titles act, or condominium act.
Inducement of panic selling in a neighborhood for financial gain is known as
blockbusting.
The operating expense ratio of a building is determined by dividing the total operating
expenses by the effective gross income.
A creditor may not consider an applicant’s immigration status and whether he or she is a
permanent resident of the United States.
A charge or hold by the government against a property to ensure the payment of taxes is
called a ____________________.
Functional obsolescence results from factors outside the property.
In a ____________________ deed, if the grantor has no interest, right or title to the
property described in the deed, none is conveyed to the grantee.
The broker in charge of an office is called the ____________________ broker.
In a foreclosure, a surplus money action would be filed by the junior mortgage holder.
The Equal Credit Opportunity Act was originally passed to provide for equal credit for
borrowers by making it unlawful to discriminate against an applicant for credit based on
sex or marital status.
A _________________________ allows the tenant to buy the property at a preset price
for a given period of time.
Land ownership includes improvements, air rights and subsurface rights but not
personal property.
Some states automatically assume that a tenancy by the entirety is created when
____________________ persons buy real estate.
The creation of excessive amounts of money by the government would have little effect
on monetary inflation.
With regard to truth in lending laws, “Only $1,000 down payment” is legally
permissible to advertise, without further explanation.
An abstract of title is a summary of all deeds or other documents dealing with the
transfer of ownership.
A minor change in the terms of a contract does not constitute a counteroffer.
When a home is sold and a new loan by an institutional lender is required, the typical
time between purchase contract signing and settlement will most likely be from 1 to 29
days.