Test #1

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Test #1
2013-09-03 11:24:57
Real Estate Test

Real Estate Test 1
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  1. Local government laws for the regulation and control of land use includes which of the following?
    • -Building codes
    • -Zoning ordinances
    • -Subdivision ordinances
  2. In order to operate a competitive, yet profitable business, a real estate broker needs to be concerned with “desk cost.” Which of the following most nearly represents the correct way to calculate desk cost?
    Divide the total operating expenses of the firm, including salaries, rent, insurance, etc., by the number of salespersons.
  3. When comparing condominiums and rented apartments, which of the following is true?
    The person who occupies each unit would have an estate in real property.
  4. If no notice of non completion is recorded on an improvement project anyone can record a mechanics lien within:
    90 days
  5. Walker hired a construction company to install a swimming pool on their residential premises. In the event the construction company was unpaid and it was necessary for them to file a lien for payment of the contract, the encumbrance created would be?
    A Specific Lien
  6. The provisions of the Subdivision Map Act are enforced by the:
    Planning Commission
  7. Land that is subject to an easement is said to be:
  8. An easement could be created for what length of time?
    • -Perpetual
    • -for years
    • -lifetime
  9. Of the following types of deeds, which one would contain no warranties, expressed or implied?
    Quitclaim deed
  10. A deed:
    Does not have to be recorded to transfer title
  11. Buyer Barker paid $4.40 per square foot to purchase a20,000 square foot lot. If the parcel is rectangular in shape and200 feet deep, the approximate cost per front foot would be?
  12. Two brokers agreed to split a 4 ½% commission on a 50-50 basis on the sale of a property for $162,500. The listing salesperson agreed to a50-50 split with his employing broker:
  13. A salesman was to receive a 45% share of a 6% gross commission. He received $8,100. The property sold for:
  14. A broker is negotiating a 25-year commercial lease at a straight annual rental of $30,000. The broker is to receive compensation for negotiating this lease as follows: 7% of the annual rent for the first year, 5% of the annual rental for the next four years, 3% of the annual rental for each ofthe next fifteen years; and 1% of the annual rental for every yearthereafter during the term of the lease. By the end of the 19th year,the broker will have received a total commission of most nearly:
    • $20,700      30000 $900 X 14 = $12,600
    •                              Total           $20,700
  15. Leland uses an 8% capitalization rate for a 40-unit apartment building that generates $174,000 net income. Which of the following is the most appropriate value of this property?
  16. A property sold for $150,000 in a county which had established a documentary transfer tax rate of $.55 for each $500. Of the purchase price only $125,000 was subject to the tax. Which of the following is nearest to the tax that would have to be paid?
  17. For Federal Income Tax purposes, capital expenditures for improvements are:
    Added to the cost basis of the property, an depreciated
  18. In which of the following contracts does one of the parties agree not to revoke an offer for a certain period of time?
    An option
  19. An offer to purchase real estate could be terminated in all of the following ways, except:
    Failure to communicate notice of revocation before the other party has communicated his acceptance.
  20. Lenders know that the lower the loan-to-value ratio, the higher the:
  21. A buyer relied upon the fraudulent statement of the seller’s agent and was damaged. The seller was unaware of the agent’s false statement, and he tried to enforce the agreement. The buyer:
    • -May sue the seller for fraud
    • -May sue the seller's agent for fraud
    • -Has sufficient grounds for rescission
  22. Which of the following is the reason that a real estate agent must keep his principal informed of material facts concerning a pending real estate transaction?
    The agent is a fiduciary
  23. When dealing with the public, a broker may not:
    Remain silent concerning material facts about a property known only to himself.
  24. The item that would appear on the debit side of a buyer’s closing statement would be?
    Purchase Price
  25. A Cal-Vet who wishes to purchase a home using the Cal-Vet program would send his application to:
    Department of Veterans Affairs
  26. Which of the following loans on a home would probably be made without requiring a down payment from the borrower?
    VA Loan
  27. The Federal Housing Administration (FHA) was created primarily to provide:
    Insurance for home loans made by approved lenders
  28. Logan sold a home to Hughes, If hughes backs out:
    Logan can sue for specific performance
  29. When a broker runs an ad. The broker must disclose:
    Name of the broker
  30. Which contract would be most difficult for a buyer to obtain financing on?
    A land Contract
  31. Recorded title to a parcel of real property was vested in Johan Wilson, a single woman. After her marriage to William Roberts, she executed a deed to the property only in the name of Johan Roberts, a married woman. The discrepancy in the grantor’s name is:
    A defect which may cause a cloud on the title