Real Estate Exam 1

Card Set Information

Author:
Anonymous
ID:
284768
Filename:
Real Estate Exam 1
Updated:
2014-10-02 23:48:07
Tags:
Real Estate
Folders:
Real Estate Exam 1
Description:
Real Estate Exam 1
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. 1. Real property can become personal property by the process known as

    A) hypothecation 

    B) Severance

    C) Accretion
    B) Severance

    If part of the real estate is severed from the structure or the land, it becomes personal property. The process is known as severance.
  2. 2. A developer built a structure that has six stories. Several years later, an ordinance was passed in that area banning any building six stories or higher. This building is a 

    A) situation in which the structure would have to be demolished. 

    B) Conditional use.

    C) Violation of the zoning laws.
    B) Conditional use
  3. 3. A man's neighbors use his driveway to reach their garage, which is on their property. The man's attorney explains that the neighbors have the right to use the driveway. The man's property is the 

    A) fee simple determinable estate.

    B) dominant tenement.

    C) servient tenement.
    C) servient tenement.

    Because the man's property serves the neighbor, it is the servient tenement (parcel).
  4. 4. A buyer purchased a home under a land contract. Until the contract is paid in full, the buyer

    A) possesses a legal life estate in the premises.

    B) has equitable title in the property.

    C) holds legal title to the premises.
    B) has equitable title in the property.

    The purchaser under a land (installment) contract holds equitable title during life of the contract, usually until all payments have been paid.
  5. 5. If a borrower computed the interest charged for the previous month on a $260,000 loan balance as $1,300, what is the borrower's interest rate?

    A) 6 percent

    B) 7 percent

    C) 7.5 percent
    A) 6 percent
  6. 6. A real estate Licensee does not show non-Asian clients any properties in several traditionally Asian neighborhoods. The licensee bases this practice on the need to preserve the valuable cultural integrity of Asian immigrant communities. Which statement is TRUE regarding the licensee's policy?

    A) The licensee's policy is steering. but it does not violate the fair housing laws because cultural preservation is the motive, not exclusion or discrimination.

    B) The licensee's policy is steering. but it does not violate the fair housing laws because cultural preservation is the motive, not exclusion or discrimination.

    C) The licensee's policy is steering and violates the fair housing laws regardless of motivation.
    C) The licensee's policy is steering and violates the fair housing laws regardless of motivation.

    It is steering, regardless of the licensee's motivation.
  7. 7. A seller signed an exclusive-right-to-sell agreement with a licensee. If the seller finds a suitable buyer with no assistance, the licensee is entitled to 

    A) full compensation from the seller.

    B) full compensation from the buyer.

    C) no compensation from seller.
    A) full compensation from the seller.

    If a seller signs an exclusive-right-to-sell listing with a broker, the seller owes the broker a commission, regardless of who sell the property.
  8. 8. A borrower applies for a mortgage, and the loan officer suggests that the borrower consider a term mortgage loan. Which statement BEST explains what the loan officer means?

    A) the debt is partially amortized over the life of the loan.

    B) the length of the term is limited by state law.

    C) the entire principal amount is due at the end of the term.
    C) the entire principal amount is due at the end of the term.

    In a term (straight) loan, the periodic payments are made on interest only. The entire original principal will come due at the end of the terms of the loan.
  9. 9. Which of the following BEST describes a capitalization rate?

    A) Rate at which the amount of depreciation in a property is measured.

    B) Rate of return an income property will produce.

    C) Mathematical value determined by a sales price.
    B) Rate of return an income property will produce.

    In the income approach to appraisal, the capitalization rate is the relationship of the net annual income to the appraised value, expressed by the following formula: Net annual income ÷ Appraised value = Capitalization rate. Therefore, it expresses the return an income property will produce.
  10. 10. A broker receives a check for earnest money from a buyer and deposits the money in the broker's personal interest-bearing checking account over the weekend. This action exposes the broker to a charge of 

    A) subrogation.

    B) commingling.

    C) novation.
    B) commingling.

    The broker has commingled the deposit with the broker's personal funds.

What would you like to do?

Home > Flashcards > Print Preview