There is no specified form to be followed for the settlement statement.
Disclosure statutes may prohibit brokers/agents from discussing certain issues related to
a property.
Regulation A applies to intrastate offerings of securities only.
Homeowners’ associations are restricted on foreclosure options for nonpayment of
association fees.
Litigation by homebuilders against HUD focuses on rules related to volume discounts.
The U.S. Supreme Court has ruled that even minor modifications of plant emissions
require EPA approval.
The Community Reinvestment Act contributed to the growth of the subprime lending
market.
The at-risk rules do not apply to real estate investors.
In community property states, its principles are applicable only if both spouses are
employed.
A general who uses a sub’s bid in his project offer has accepted the sub’s bid.
A mortgagee can provide for a power of sale in a mortgage.
Both the buyer and the seller must sign the escrow instructions for it to be valid.
What are mall rats?
a. Rodents and other vermin that have not been removed by the landlord
b. A violation of the warranty of habitability commercial landlords give
c. Teens who frequent malls and often harass other patrons
d. Both a and b
With respect to #20, Hal
a. Could be liable for injuries to the children that they experience while using the path
b. Would not be liable to the children for any injuries because they are trespassers
c. Would be liable only for attractive nuisances
d. Could utilize man traps without liability because the children are trespassers
(Note #21 incorporates chapters 2 and 3 material)
A deed contains the following description, ‘The lot at the corner of Union Street and
Fern Street in Brighton Beach, NJ.’
a. The description is a valid legal description
b. The description is a valid legal description if the name of the county is added
c. The description is a valid legal description if the street address is added
d. The description is not a valid legal description
The Comprehensive Environmental Response, Compensation and Liability Act is
a. The act that establishes the EPA
b. The act that establishes EIS requirements
c. The act that establishes the superfund
d. None of the above
In which of the following syndication forms can losses be deducted by the investors?
a. REITs
b. Partnerships
c. Subchapter S corporations
d. a, b and c
The Implied Warranty of Habitability in commercial leases
a. Is very limited
b. Is the same as in residential leases
c. Is void in most states
d. None of the above
RESPA does not apply to
a. Residential mortgages
b. Federally’‘insured mortgages
c. Second mortgages
d. RESPA applies to all of the above
Which factor will be controlling in determining whether an item is a fixture?
a. Intent
b. Degree of annexation
c. Whether it is a trade fixture
d. None of the above
Flowing Stream Townhouse Development’s homeowners’ association has adopted a rule
that no owner can sell or lease his or her unit to a Tier 3 registered sex offender. Alice
Strom is a Flowing Stream owner who has sold her townhome to a registered Tier 3 sex
offender. The homeowners’ association board has refused to allow the buyer to move
into his townhome and has obtained a court injunction prohibiting his taking occupancy.
Which of the following factors will the court consider in determining the validity of the
rule?
a. Whether such rules will serve to exclude a group of citizens from being able to own a
home
b. How long the rule has been in place
c. Whether Alice had actually read the rule
d. Whether the real estate broker in the sale disclosed the rule
In which of the following circumstances will the authority of the contracting party be
questionable (for purposes of lien attachment)?
a. Lessee
b. Landowner (fee simple)
c. Life estate holder
d. All of the above
Which of the following is a non’‘probatable asset?
a. Life insurance proceeds
b. Legacies
c. Devises
d. All of the above
Homer Sidway hired Alma Dixson, dba Home Improvers, to add a room onto his
existing home. Sidway had done some electrical work in his attic some years earlier. He
had done so without a permit, and there were exposed wires and other problems with
the workmanship. When Dixson went into the attic to do the wiring for the new room,
he was injured as result of a shock from one of the wires. Homer
a. is liable to Alma for the failure to warn about the attic
b. is not liable since Alma was hired for his expertise and is expected to know these
things
c. is not liable because Alma is a contractor and not an employee
d. is not liable because the contractor must carry insurance
e. None of the above
“To my daughter so long as her husband is alive” is a
a. Fee simple subject to a condition subsequent
b. Fee simple determinable
c. Estate for years
d. Periodic tenancy
A riparian
a. Is a river
b. Is a landowner of land along a waterway
c. Is covered by the prior appropriation doctrine
d. Both b and c
e. None of the above
Which of the following syndication forms pays taxes?
a. REITs
b. Partnerships
c. Subchapter S corporations
d. Limited liability companies
e. None of the above
Yield spread premiums are illegal under RESPA.
Plat map descriptions
a. Often include a reference to a government survey
b. Are invalid without a street address
c. Both a and b
d. None of the above
Which unity is not required for tenancies in common?
a. Time
b. Possession
c. Interest
d. Both a and b
e. Both a and c
The National Association of Realtors’ 2009 settlement with the Justice Department
a. Requires NAR to accept all licensed brokers and agents as members
b. Requires NAR to halt exclusive listing agreements
c. Requires NAR to eliminate its opt-out provision for web-only real estate brokers
d. Resulted in several NAR officials pleading guilty to antitrust violations
The implied warranty of habitability
a. Applies only until the tenant moves in
b. Cannot be used as a basis for demanding repairs
c. Can be disclaimed
d. None of the above
Under an assumption in the sale of mortgaged property
a. The seller remains personally liable
b. The buyer is not personally liable
c. The property is not subject to foreclosure upon default
d. None of the above
Jane Wyman has a listing agreement to sell Dan and Darla Rogers’ home. Jane has
noticed several stains on the ceiling in three of the home’s bedrooms. Dan and Darla
assure Jane that their roof is just fine and that those stains can be painted over and
occurred before their new roof was installed. Jane
a. Has done her duty by verifying with the sellers and has no further obligations of
investigation on the stains
b. Must investigate on her own to determine the source of the stains
c. Is not required to give her opinion to any buyers about the stains and is not liable for
any nondisclosure about the stains
d. Must hire a contractor to paint the stains, and, if necessary, repair the roof
A solar easement is an example of
a. A negative easement in gross
b. A negative easement appurtenant
c. An affirmative easement in gross
d. An affirmative easement appurtenant
e. None of the above
Which of the following would not be a violation of the Sherman Act?
a. Brokers agreeing on a single rate commission for a county
b. Brokers agreeing on no fixed’‘rate commissions
c. Brokers agreeing to form a multi’‘list service
d. All are violations
Discuss whether each of the following would be fixtures or personal property.
a. Sign on store premises (purchased by tenant)
b. Wallpaper in a store (installed by tenant)
c. Microwave ovens in a restaurant
Describe the purpose of the Endangered Species Act.
What is the ‘procuring cause of the sale’?
An easement can be expanded through prescriptive use.
What is the effect of one spouse earning no income during the course of a marriage in a
community property state?
Compute the capital gain on the following:
Commercial leases need not be in writing to be enforceable.
Anchor tenants usually pay less rent than other tenants.
Ordinances are generally enacted by state legislatures.
A lender has designated a racially’‘integrated neighborhood as one in which loans will
be made for a maximum of only 50% of the appraised value. The lender claims the area
is high’‘risk and hence the 50% reduction is necessary to assure adequate loan security.
Is the lender correct or has the lender committed an illegal act?
With reference to #49, the Rule Against Perpetuities does not apply to the son’s interest.