General: Multiple Choice Ch. 13-16

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red_star1412
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General: Multiple Choice Ch. 13-16
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2013-03-16 16:33:34
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real estate multiple choice
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general book multiple choice from chapters 13-16
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  1. All of the following are acceptable evidence of an owner's title EXCEPT

    A. a recorded deed
    B. a title insurance policy
    C. a certification of title
    D. an abstract of title and attorney's opinion
    A. a recorded deed
    (this multiple choice question has been scrambled)
  2. To serve as public notice, where is a deed recorded?

    A. the city where the owner lives
    B. the county or, in some states, the town where the property is located
    C. the state capital
    D. the largest city in the state
    B. the county or, in some states, the town where the property is located
    (this multiple choice question has been scrambled)
  3. 5 years ago, a lien was recorded against a parcel of property by a construction company. When the lien was recorded, a man was the owner of the property and a woman was an active partner in the construction company. The property is in county A, but the lien was recorded in county B. Now, the woman is trying to buy the property from the man. A title search in county A disclosed no liens against the property. Which of the following is TRUE?

    A. the woman has no notice of the lien
    B. the woman has both actual and constructive notice of the lien, because of her association with the construction company and the recorded lien
    C. the woman has constructive notice of the lien but not actual notice, because of the mistake in recording
    D. the woman has actual notice of the lien but not constructive notice, because of the mistake in recording
    D. the woman has actual notice of the lien but not constructive notice, because of the mistake in recording
    (this multiple choice question has been scrambled)
  4. A woman purchased property from a man. Shortly after closing, the woman discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What can she do now?

    A. because the title was flawed, the woman can legally void the sale, and the man must return any consideration
    B. the woman has no recourse
    C. because the man conveyed unmarketable title, the woman is entitled to a new title report
    D. because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed
    D. because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed
    (this multiple choice question has been scrambled)
  5. The reason that deeds and liens and other claims are recorded is to give

    A. direct notice
    B. constructive notice
    C. actual notice
    D. nominal notice
    B. constructive notice
    (this multiple choice question has been scrambled)
  6. A history of all recorded liens and encumbrances is revealed in the

    A. unrecorded documents
    B. abstract
    C. title insurance policy
    D. chain of title
    B. abstract
    (this multiple choice question has been scrambled)
  7. The person who prepares a certificate of title is the

    A. buyer
    B. broker
    C. abstractor
    D. seller
    C. abstractor
    (this multiple choice question has been scrambled)
  8. Which of the following would be covered in a standard title insurance policy?

    A. easements and restrictive covenants
    B. forged documents
    C. defects discoverable by physical inspection
    D. unrecorded liens
    B. forged documents
    (this multiple choice question has been scrambled)
  9. A title insurance policy that protects the interest of a mortgagee is referred to as a(n)

    A. lender's policy
    B. leasehold policy
    C. ALTA policy
    D. certificate of sale policy
    A. lender's policy
    (this multiple choice question has been scrambled)
  10. What is an effect of the Marketable Title Act in the states in which it has been adopted?

    A. established standardized forms for abstracts the title
    B. limits the time beyond which title records must be searched
    C. disqualifies use of an attorney's opinion of title as acceptable evidence of title
    D. provides a certification system for qualifying title insurance companies
    B. limits the time beyond which title records must be searched
    (this multiple choice question has been scrambled)
  11. States that recognize the lender as the owner of the mortgaged property are known as

    A. lien theory states
    B. recordation theory states
    C. subordination theory states
    D. title theory states
    D. title theory states
    (this multiple choice question has been scrambled)
  12. A document that indicates that a loan has been made is referred to as a

    A. mortgage deed
    B. promissory note
    C. deed of trust
    D. satisfaction
    B. promissory note
    (this multiple choice question has been scrambled)
  13. A woman defaults on her mortgage, and the lender forecloses. The lender's foreclosure suit is filed on March 15, and the sale is to be held on May 10. If the woman attempts to redeem the property on May 1, which of the following statements applies?

    A. the woman is exercising her statutory right of redemption
    B. the woman's attempt to redeem the property is too early; by statute, she must wait until after the sale
    C. the woman is exercising her equitable right of redemption
    D. the woman cannot redeem the property after a foreclosure suit is filed
    C. the woman is exercising her equitable right of redemption
    (this multiple choice question has been scrambled)
  14. A house is listed for $250,000. A man buys it for $230,000, with a 20% down payment. He borrows the balance on a fixed-rate mortgage at 6%. The lender charges 4 points. If there are no other closing costs involved, how much money does the man need at closing?

    A. $53,360
    B. $46,000
    C. $7,360
    D. $26,000
    A. $53,360

    Calculate down payment
    $230,000 x 20% = $46,000

    Determine points charge
    $230,000 x 80% x 4% = $7,360

    Total the 2 amounts
    $46,000 + $7,360 = $53,360
    (this multiple choice question has been scrambled)
  15. One afternoon, a client calls a real estate broker. "My lender just told me that my note and mortgage is negotiable instrument," says the client. "What does that mean?" Which of the following would be the broker's BEST response?

    A. "Uh-oh! That means we have to go back to the sellers and ask them to pay the points."
    B. "Oh no! That means the mortgage can't be assumed by the next person you sell to."
    C. "Don't worry. That means the mortgage can be sold by the lender, but you're not affected."
    D. "That's great! It means the lender is willing to negotiate on the interest rate."
    C. "Don't worry. That means the mortgage can be sold by the lender, but you're not affected."
    (this multiple choice question has been scrambled)
  16. A deed of trust involves all of the following terminology EXCEPT

    A. mortgagor
    B. borrower
    C. trustee
    D. lender
    A. mortgagor
    (this multiple choice question has been scrambled)
  17. One state is a lien theory state. A buyer purchases property from a seller and gives him a mortgage as part of the purchase price. Therefore, the buyer is the borrower, and the seller is the lender. All of the following statements are correct EXCEPT

    A. the buyer has given legal title to the seller
    B. the seller has only a lien interest in the property
    C. the buyer retains equitable title to the property
    D. if the buyer defaults on the loan, the seller must undergo a formal foreclosure proceeding to recover the security
    A. the buyer has given legal title to the seller
    (this multiple choice question has been scrambled)
  18. Where a trust deed is used, the lender is the

    A. trustor
    B. maker
    C. beneficiary
    D. trustee
    C. beneficiary
    (this multiple choice question has been scrambled)
  19. A mortgage company charges borrowers as 1.5% loan origination fee. A man buys a house for $210,000 and pays $50,000 in cash. He applies for a mortgage to cover the balance. What will the mortgage company charge as a fee if the asking price of the house was $235,000?

    A. $3,150
    B. $3,750
    C. $2,400
    D. $3,525
    C. $2,400

    $210,000 - $50,000 x 1.5% = $2,400
    (this multiple choice question has been scrambled)
  20. A mortgage documents contains the following clause: "In the event of Borrower's default under the terms of this Agreement, Lender may declare the entire unpaid balance of the debt due and payable immediately." This clause is referred to as a(n)

    A. defeasance clause
    B. hypothecation clause
    C. release clause
    D. acceleration clause
    D. acceleration clause
    (this multiple choice question has been scrambled)
  21. This month, a man made the last payment on  a mortgage loan secured by a woman. The man's lender must execute a

    A. possessory note
    B. promissory note
    C. satisfaction of mortgage
    D. release deed
    C. satisfaction of mortgage
    (this multiple choice question has been scrambled)
  22. A woman took out a 30-year mortgage on a parcel of property in 1992. On April 1, 2010, her lender discovered that the property lies in a flood hazard area as defined by the National Flood Insurance Reform Act of 1994. The lender informed the woman of the situation on April 15. Based on these facts, which of the following statements is correct?

    A. the National Flood Insurance Reform Act of 1994 does not apply to the woman's property
    B. if the woman refuses to purchase flood insurance, the lender must do so; however, the lender may not charge the cost of the additional insurance to the woman
    C. the woman has until May 30 to purchase flood insurance
    D. the woman has until May 15 to purchase flood insurance
    C. the woman has until May 30 to purchase flood insurance

    if the lender discovers that a secured property is in a flood hazard area. The borrower has 45 days to purchase flood insurance. If the borrower does not purchase the flood insurance, the lender must purchase the insurance and charge back the cost of the insurance to the borrower.
    (this multiple choice question has been scrambled)
  23. A buyer purchases property from a seller for $45,000 in cash and assumes the seller's outstanding mortgage balance of $98,500. The lender executes a release for the seller. The buyer fails to make any mortgage payments, and the lender forecloses. At the foreclosure sale, the property is sold for $75,000. Based on these facts, who is liable and for what amount?

    A. the buyer is solely liable for $30,000
    B. the buyer and the seller are equally liable for $23,500
    C. the seller is solely liable for $23,500
    D. the buyer is solely liable for $23,500
    D. the buyer is solely liable for $23,500
    (this multiple choice question has been scrambled)
  24. All of the following statements are characteristic of a typical land contract EXCEPT

    A. the vendee holds legal title during the contract term
    B. the buyer is granted equitable title and possession
    C. at the end of the loan term, the seller will deliver clear title
    D. in the event of a default, the vendor may retain any money already paid
    A. the vendee holds legal title during the contract term
    (this multiple choice question has been scrambled)
  25. The borrower defaulted on his mortgage loan, leaving an unpaid balance of $95,000. After receiving only $85,000 from the sale of the property, the lender filed for a

    A. release deed
    B. deficiency judgement
    C. lis pendens
    D. satisfaction piece
    B. deficiency judgement
    (this multiple choice question has been scrambled)
  26. A woman was the owner of a parcel of property. When she defaulted on her loan, the trustee immediately sold the property to recover the debt. The trustee acted under the terms of the security instrument. Based on these facts, which of the following statements is TRUE?

    A. the woman could have exercised her statutory right of redemption at any time prior to the trustee's sale of the property
    B. the trustee's sale of the property was illegal unless the woman's state permits a so-called friendly foreclosure
    C. the exercise of this power of sale clause is an example of nonjudicial foreclosure
    D. the exercise of this power of sale clause is an example of strict foreclosure
    C. the exercise of this power of sale clause is an example of nonjudicial foreclosure
    (this multiple choice question has been scrambled)
  27. The woman could have exercised her statutory right of redemption at any time prior to the trustee's sale of the property. The difference between the interest rate that the lender charges and what the investor demands can be made up by charging

    A. discount points
    B. loan origination fees
    C. satisfaction fees
    D. underwriting fees
    A. discount points
    (this multiple choice question has been scrambled)
  28. What is the term that refers to a lender charging an interest rate that is higher than that permitted by law?

    A. usury
    B. defeasance
    C. alienation
    D. hypothecation
    A. usury
    (this multiple choice question has been scrambled)
  29. Parties to lending agreements are referred to by different terms. Which of the following refers to the same party?

    A. borrower = mortgagor
    B. trustee = borrower
    C. borrower = beneficiary
    D. trustor = mortgagee
    A. borrower = mortgagor
    (this multiple choice question has been scrambled)
  30. If the lender wants to call the entire note due and payable if the borrower stops making payments, the security instrument must include a(n)

    A. acceleration clause
    B. defeasance clause
    C. alienation clause
    D. prepayment clause
    A. acceleration clause
    (this multiple choice question has been scrambled)
  31. When a deed of trust is the security instrument, which party usually chooses the trustee?

    A. the lender
    B. the devisee
    C. the county government
    D. the borrower
    A. the lender
    (this multiple choice question has been scrambled)
  32. What is the purpose of usury laws?

    A. to protect consumers from lenders charging excessively high rates
    B. to set limits on discount points investors can demand from lenders
    C. to set limits on the loan origination fees lenders can charge
    D. to maximize a lender's yield from real estate loans
    A. to protect consumers from lenders charging excessively high rates
    (this multiple choice question has been scrambled)
  33. How does an acceleration clause help lenders?

    A. lenders would rather foreclose on property than hold a long term loan
    B. it sets out the provisions for the impound account
    C. without the acceleration clause, lenders would have to sue the borrower for every overdue payment
    D. it results in a deed in lieu of foreclosure rather than the default process
    C. without the acceleration clause, lenders would have to sue the borrower for every overdue payment
    (this multiple choice question has been scrambled)
  34. What is a major disadvantage to lenders of accepting a deed in lieu of foreclosure?

    A. it is an adverse element in the borrower's credit history
    B. the lender gains rights to private mortgage insurance
    C. the lender takes the real estate subject to all junior liens
    D. the process is lengthy and involves a lawsuit
    C. the lender takes the real estate subject to all junior liens
    (this multiple choice question has been scrambled)
  35. All of the following are roles of the Federal Reserve System EXCEPT

    A. maintain sound credit conditions
    B. help counteract inflationary trends
    C. create a favorable economic climate
    D. make direct loans to buyers
    D. make direct loans to buyers
    (this multiple choice question has been scrambled)
  36. A lender who collects payments, processes them, and follows up on loan delinquencies is said to

    A. increase the yield to the lender
    B. service the loan
    C. underwrite the loans
    D. insure loan payments
    B. service the loan
    (this multiple choice question has been scrambled)
  37. The primary mortgage market lenders that have most recently branched out into making mortgage loans are

    A. insurance companies
    B. endowment funds
    C. savings associations
    D. credit unions
    D. credit unions
    (this multiple choice question has been scrambled)
  38. What is the kind of real estate loan in which the interest rate is tied to the movement of an objective economic indicator?

    A. adjustable-rate payment
    B. straight loan
    C. graduated mortgage payment
    D. buydown
    A. adjustable-rate payment
    (this multiple choice question has been scrambled)
  39. The loan in which equal payments reduce the full amount of principal and interest to zero is a(n)

    A. amortized loan
    B. hypothecation
    C. buydown
    D. straight loan
    A. amortized loan
    (this multiple choice question has been scrambled)
  40. The borrower who chooses an adjustable-rate mortgage can depend on the margin to

    A. remain constant for the life of the loan
    B. only change according to an agreed-upon amount
    C. fluctuate according to some economic index
    D. decrease over the life of the loan
    A. remain constant for the life of the loan
    (this multiple choice question has been scrambled)
  41. To qualify for most conventional loans, the borrower's monthly housing expenses and total other monthly obligations cannot exceed what percent of the total gross monthly income?

    A. 36%
    B. 41%
    C. 28%
    D. 45%
    A. 36%
    (this multiple choice question has been scrambled)
  42. What does private mortgage insurance cover?

    A. protects the top 20% to 30% of the loan against borrower default
    B. reimburses the cosigner if the borrower defaults
    C. pays the lender if the borrower dies
    D. pays the borrower if the borrower loses the house to a title claim
    A. protects the top 20% to 30% of the loan against borrower default
    (this multiple choice question has been scrambled)
  43. Regulation Z generally applies to

    A. a credit transaction secured by a residence
    B. agricultural loans of more than $25,000
    C. commercial loans
    D. business loans
    A. a credit transaction secured by a residence
    (this multiple choice question has been scrambled)
  44. Who is responsible for paying the broker or the broker's salesperson when one of them uses a computerized loan origination system to take the loan application from a borrower?

    A. the seller
    B. the borrower
    C. it is split between the lender and borrower
    D. the lender
    B. the borrower
    (this multiple choice question has been scrambled)
  45. A man's monthly mortgage payment is $665.50. The interest rate on the amortized loan is 6%, and the outstanding balance is $111,000. When the man makes this month's payment, what amount of the total payment will be applied to interest, and what amount to principal?

    A. $ 450 interest; $215.50 principal
    B. $503.50 interest; $162 principal
    C. $555 interest; $110.50 principal
    D. $497 interest; $168.50 principal
    C. $555 interest; $110.50 principal

    $111,000 x 6% ÷ 12 = $555 monthly interest

    $665.50 - $555 = $110.50 principal
    (this multiple choice question has been scrambled)
  46. All of the following are lenders in the primary mortgage market EXCEPT

    A. endowment funds
    B. insurance companies
    C. mortgage brokers
    D. credit unions
    C. mortgage brokers
    (this multiple choice question has been scrambled)
  47. On loans originated after July 1999, when must a lender automatically terminate private mortgage insurance?

    A. after loan payments have been paid for at least 5 years without delinquency
    B. when the borrower has accumulated at least 22% equity and is current on payments
    C. after borrower's equity reaches at least 28%
    D. when a new appraisal shows that the property's value has increased by at least 10%
    B. when the borrower has accumulated at least 22% equity and is current on payments
    (this multiple choice question has been scrambled)
  48. A house had a sale price of $240,000. The buyer obtained a loan for $220,000. If the lender charges 3 points, how much will the buyer pay in points?

    A. $5,335
    B. $7,540
    C. $6,950
    D. $6,600
    D. $6,600

    $220,000 x 6% = $6,600
    (this multiple choice question has been scrambled)
  49. On which type of loan can the borrower prepay without penalty?

    a. loans sold to Fannie Mae and Freddie Mae
    b. FHA loans
    c. VA loans
    d. all of the above
    d. all of the above
  50. Under the terms of a man's adjustable-rate mortgage, the interest rate he must pay is (1) the US Treasury bill rate as of June 1 of each year, not to exceed 8.95% for any period; plus (2) 1.5 %. What is the term used to describe (2)?

    A. index
    B. margin
    C. payment cap
    D. rate cap
    B. margin
    (this multiple choice question has been scrambled)
  51. A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appraised value of the home is $560,000. The woman plan to pay $94,000 in cash and take out a mortgage for the remainder. What is the LTV ratio for this property?

    A. 82%
    B. 84%
    C. 85%
    D. 83%
    B. 84%
    (this multiple choice question has been scrambled)
  52. A buyer is purchasing property from a seller. The seller bought the property on December 20, 1989, with an FHA loan and has lived there ever since. Because of its favorable terms, the buyer would like to assume the seller's mortgage. Is this possible?

    A. yes, but the buyer will have to undergo the complete buyer qualification process
    B. Yes, there are no restrictions on the assumption of this mortgage
    C. no, this FHA loan is not assumable
    D. yes, but the buyer will have to undergo a creditworthiness review only
    A. yes, but the buyer will have to undergo the complete buyer qualification process
    (this multiple choice question has been scrambled)
  53. In 1967, a man served for 6 months on active duty in Vietnam. In 1998, he was killed in a skiing accident. His widow wishes to use the man's life insurance money to make a down payment on a condominium and believes she is entitled to a VA-guaranteed loan. Is she correct?

    A. yes, the unremarried spouse of a qualified veteran is entitled to a VA-guaranteed loan
    B. yes, whether or not she remarries, the man's widow is entitled to the same VA benefits as he was during his lifetime
    C. no, the man's death was not service-related
    D. no, the man did not meet the time-in-service criteria for qualified veterans
    C. no, the man's death was not service-related
    (this multiple choice question has been scrambled)
  54. Which of the following makes direct loans to qualified borrowers?

    A. VA
    B. FSA
    C. Fannie Mae
    D. FHA
    B. FSA
    (this multiple choice question has been scrambled)
  55. A woman is purchasing a fully furnished condominium unit. In this situation, the woman would be MOST likely to use a

    A. blanket loan
    B. buydown
    C. wraparound loan
    D. package loan
    D. package loan
    (this multiple choice question has been scrambled)
  56. A real estate broker has CLO terminal in her office. Because there are more than a dozen lending institutions in the city, the broker has found that the CLO greatly streamlines the application process for her clients. She sits down at the terminal with a homebuyer and the following 3 events take place:

    1. the broker explains that there is a fee for using the terminal of one-half point, based in the loan amount, and that the homebuyer may choose to finance the fee
    2. the broker explains only the different kinds of services offered by the 2 local lenders who pay her a monthly screen fee to be included on the CLO system
    3. the broker helps the homeowner answer the on-screen qualification questions

    Which of these events is an improper use of a CLO system?

    A. 1 only
    B. 1 and 3
    C. 2 and 3
    D. 2 only
    D. 2 only
    (this multiple choice question has been scrambled)
  57. The Equal Credit Opportunity Act prohibits lenders from discrimination against credit applicants on the basis of all of the following factors EXCEPT

    A. past credit history
    B. marital status
    C. income from public assistance
    D. religion
    A. past credit history
    (this multiple choice question has been scrambled)
  58. Lenders that make conventional loans to sell in he secondary mortgage market follow the standardized forms and guidelines issued by Fannie Mae and

    A. Ginnie Mae
    B. FSA
    C. FHA
    D. Freddie Mac
    D. Freddie Mac
    (this multiple choice question has been scrambled)
  59. Because some of the principal is still owned at the end of the term, a balloon payment loan is a(n)

    A. interest-only loan
    B. automatically-extended loan
    C. negatively amortized loan
    D. partially amortized loan
    D. partially amortized loan
    (this multiple choice question has been scrambled)
  60. A feature of an adjustable-rate mortgage that limits the amount the interest rate may increase at any one time is a

    A. periodic rate cap
    B. margin cap
    C. payment cap
    D. life-of-the-loan rate cap
    A. periodic rate cap
    (this multiple choice question has been scrambled)
  61. What is a type of loan in which payments are made by the lender to the borrower and is usually repaid from the sale of the property?

    A. reverse mortgage
    B. buydown
    C. wraparound loan
    D. home equity loan
    A. reverse mortgage
    (this multiple choice question has been scrambled)
  62. What helps lenders reduce the risk on a conventional mortgage loan with a high LTV?

    A. private mortgage insurance
    B. sale-and-leaseback arrangement
    C. flood insurance
    D. home equity
    A. private mortgage insurance
    (this multiple choice question has been scrambled)
  63. A tenant pays for his own utilities and makes one payment each month to the landlord who pays the taxes, insurance on the building, and maintenance. What type of lease arrangement is this?

    A. percentage
    B. graduated
    C. net
    D. gross
    D. gross
    (this multiple choice question has been scrambled)
  64. Some tenants want to buy the house they are renting. However, they do not have enough money for the down payment. The landlord agreed to put part of the tenants' rent toward the purchase price. The landlord and tenants have agreed to a(n)

    A. ground lease
    B. lease purchase
    C. option
    D. sale leaseback
    B. lease purchase
    (this multiple choice question has been scrambled)
  65. The expiration date of a one-year lease is September 30. On July 1, the house is sold to a family that wants to live in the rental property. Assuming the lease does not include a sale clause, how soon can they move in?

    A. October 1, present year
    B. December 31, present year
    C. July 1, present year
    D. July 1, next year
    A. October 1, present year
    (this multiple choice question has been scrambled)
  66. A woman rents an apartment from a man under a one-year written lease. The expiration date of the lease is May 1. How much notice must the man give the woman to recover possession when the lease expires?

    A. 60 days
    B. 30 days
    C. 1 week
    D. no notice required
    D. no notice required
    (this multiple choice question has been scrambled)
  67. 2 years ago, a woman rented a parcel of property to a man. The agreement stated only that the man agreed to pay the woman $500 per month. What type of tenancy does the man have?

    A. for years
    B. periodic
    C. holdover
    D. at sufferance
    B. periodic
    (this multiple choice question has been scrambled)
  68. A man rents an apartment under a 2-year written lease from a landlord. 3 months after signing the lease, the man is transferred to another country for a year. During this period, he leases the apartment to a woman. The woman mails monthly rent checks to the man, who continues to make monthly rental payments to the landlord. In this situation, the woman has a

    A. sublease
    B. lease
    C. tenancy at will
    D. periodic tenancy
    A. sublease
    (this multiple choice question has been scrambled)
  69. A tenant lives in an apartment building owned by a landlord. Vandals break into the building and destroy the central air-conditioning system. The tenant's apartment becomes uncomfortably warm. The next day, the tenant sues the landlord for constructive eviction. Under these facts, will the tenant win?

    A. yes, if the tenant's lease promises that the apartment will be air conditioned
    B. yes, to claim constructive eviction, it is not necessary that the condition be the result of the landlord's personal actions
    C. no, the premises are not unusable, the condition was not due to the landlord's conscious neglect, and the tenant has not abandoned the apartment
    D. no, to claim constructive eviction, the tenant must prove that the premises are uninhabitable
    C. no, the premises are not unusable, the condition was not due to the landlord's conscious neglect, and the tenant has not abandoned the apartment
    (this multiple choice question has been scrambled)
  70. In August, a tenant signs a 1-year lease in an apartment complex. Rent payments are due on the 15th of each month. On December 12, the apartment complex is sold to a new owner. On March 14, the building burns. Which of the following statements accurately describes the tenant's obligations?

    A. the tenant is required to continue paying rent for the full lease term, because a tenancy for years cannot be terminated by the destruction of the premises
    B. the tenant is required to continue paying rent, but the residential lease is converted by law into a ground lease
    C. the tenant is not required to continue paying rent after December 12, because the sale voids the preexisting lease
    D. the tenant is not required to continue paying rent after March 14, because the premises have been destroyed
    D. the tenant is not required to continue paying rent after March 14, because the premises have been destroyed
    (this multiple choice question has been scrambled)
  71. A woman signs a lease to rent an apartment. Her lease runs from October 1 until November 1 of the following year. A man signs a 2-year lease to rent an apartment in a new building that will be ready for occupancy in 15 months. Which of these leases must be in writing to satisfy the statute of frauds?

    A. the man's only
    B. both the man's and the woman's
    C. neither the man's nor the woman
    D. the woman's only
    B. both the man's and the woman's
    (this multiple choice question has been scrambled)
  72. A tenant signed a 1-year lease with a landlord on April 10. On the following March 1, the landlord asked the tenant whether the lease would be renewed. The tenant did not response but was still in the apartment on April 11. What can the landlord do?

    A. if the tenant offers a rent check, the landlord must accept it and the tenant is entitled to a renewal of the one-year lease
    B. the landlord may either evict the holdover tenant or accept a rent check, creating a holdover or periodic tenancy
    C. the landlord must initiate eviction proceedings within the 1st one-month rental period
    D. the landlord cannot evict the tenant; because the tenant remained in possession of the premises, the lease has been automatically renewed for an additional year
    B. the landlord may either evict the holdover tenant or accept a rent check, creating a holdover or periodic tenancy
    (this multiple choice question has been scrambled)
  73. If a tenant remains in possession of leased property after the expiration of the lease term, without paying rent and without the landlord's consent, what is the tenant's status?

    A. trespasser
    B. tenant at will
    C. periodic tenant
    D. freehold tenant
    A. trespasser
    (this multiple choice question has been scrambled)
  74. A woman wanted to rent an apartment from a man. Because of a physical disability, it would be necessary for the woman to have all the door-knobs replaced with lever-type handles. In this case, which of the following statements is TRUE?

    A. the man is legally obligated to permit the modifications to be made at the woman's expense
    B. the Fair Housing Act requires that the man make the accommodation for the woman at the man's expense; no additional rent may be charged for the woman's modified unit
    C. because the proposed modifications would interfere with a future tenant's use of the premises, the woman may refuse to permit them
    D. because the modifications demanded by the woman are not reasonable, the man is not legally required to permit them
    A. the man is legally obligated to permit the modifications to be made at the woman's expense
    (this multiple choice question has been scrambled)
  75. A man operates a small store in a shopping center. Under the terms of the lease, the landlord pays all operating expenses. The man pays a base rent of $1,000 per month, plus 15% of monthly gross profits over $10,000. The man has a

    A. gross lease
    B. net lease
    C. variable lease
    D. percentage lease
    D. percentage lease
    (this multiple choice question has been scrambled)
  76. When a landowner leases unimproved land to a tenant, who agrees to erect a building on the land, the lease is usually referred to as a(n)

    A. improvement lease
    B. ground lease
    C. lease purchase
    D. gross lease
    B. ground lease
    (this multiple choice question has been scrambled)
  77. A man rented a house from a landlord. During the lease term, the man moved out of the state without telling the landlord. The man assigned the lease to a woman, who failed to make any rental payments. In this situation, which of the following statements is TRUE?

    A. the man has no obligation to the landlord, because the lease was assigned, not sublet
    B. the woman has no obligation to the landlord, because her lease agreement is with the man
    C. the man is still liable to the landlord because his arrangement with the woman as described is a sublease, not an assignment
    D. the man is still liable to the landlord for the outstanding rent, because the landlord did not release the man when the lease was assigned to the woman
    D. the man is still liable to the landlord for the outstanding rent, because the landlord did not release the man when the lease was assigned to the woman
    (this multiple choice question has been scrambled)
  78. What is the purpose of a security deposit held by a landlord?

    A. it compensates the landlord in the event of rent default or premises damage
    B. it functions as the last month's rent on the lease
    C. it acts as an investment option for the tenant
    d. All of the above
    A. it compensates the landlord in the event of rent default or premises damage
    (this multiple choice question has been scrambled)
  79. Who owns the building that is erected on land that has a ground lease?

    A. trustee
    B. testator
    C. lessee
    D. lessor
    C. lessee
    (this multiple choice question has been scrambled)
  80. What must a landlord do before commencing a lawsuit for actual eviction?

    A. obtain a judgement from the court
    B. contract with a company to forcibly remove the tenant and possessions
    C. serve notice on the tenant
    D. notify the sheriff
    C. serve notice on the tenant
    (this multiple choice question has been scrambled)
  81. A tenant has a lease on a top-floor apartment in a building owned by a landlord. The building is old, and the landlord has been planning to replace the roof. However, she has not yet replaced it. In spring, a heavy rainstorm created a roof leak that badly damaged the tenant's apartment. The landlord laid a tarp on the roof to prevent more water coming in. However, after 2 months, the landlord had still not repaired the damage to the apartment. The tenant moves out and claims construction eviction. Can she win this case?

    A. no, because the time period was not long enough
    B. no, because the apartment was not uninhabitable
    C. yes, because placing the tarp was an admission of responsibility by the landlord
    D. yes, because the landlord was negligent in not repairing the damage
    B. no, because the apartment was not uninhabitable
    (this multiple choice question has been scrambled)
  82. A lease that provides for specified rent increases at set future dates is called a(n)

    A. graduated lease
    B. adjustable lease
    C. percentage lease
    D. interval lease
    A. graduated lease
    (this multiple choice question has been scrambled)

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