Pearson Vue Practice Test (Real Estate)

Card Set Information

Author:
Anonymous
ID:
7995
Filename:
Pearson Vue Practice Test (Real Estate)
Updated:
2010-02-24 19:33:59
Tags:
Real Estate Pearson Vue Practice Test
Folders:

Description:
Pearson Vue Washington Practice Test
Show Answers:

Home > Flashcards > Print Preview

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


  1. When the appraiser looks at the home Sandy has just purchased, he notices it has a fireplace and the comparable homes do not. He makes a $3,000 upward adjutment on his sales comparison approach worksheet. The $3,000 adjustment is based on what appraisal principle?

    A. Anticipation
    B. Competition
    C. Conformity
    D. Contribution
    D. Contribution

    This is the amount the fireplace "contributes" to the value. It is not necessarily the cost to install the individual item
    (this multiple choice question has been scrambled)
  2. When a contract is terminated without undoing anything that has been done so far, the action is called:

    A. Cancellation
    B. Repudiation
    C. Recission
    D. Fruition
    A. Cancellation

    Cancellation most often occurs when a purchase agreement is terminated.
    (this multiple choice question has been scrambled)
  3. In title states, what clauseis unique to the mortgage?

    A. Defeasance
    B. Pre-payment penalty clause
    C. Accelaration
    D. Alienation
    A. Defeasance

    In title theory states, there must be language that cancels the mortgagee's right to the title to land on the payment on the debt.
    (this multiple choice question has been scrambled)
  4. A 10-unit apartment building has an annual net income of $5,000 per unit. If the purchasers wish a 10% return on their investment, how much should they be willing to pay for the property?

    A. $5,000
    B. $50,000
    C. $500,000
    D. $5,000,000
    C. $500,000

    $500,000. The value of the property = net incom/rate of return. Thus value = $50,000/.10=$500,000
    (this multiple choice question has been scrambled)
  5. A salesperson is told by his client not to disclose the fact that, during heavy rains, the basement takes on water. The agent:

    A. Must disclose the defect to any interested buyers.
    B. Must not disclose the defect, due to the duty of obedience
    C. Must only show the property on sunny days
    D. Must give up the listing
    A. Must disclose the defect to any interested buyers

    An agent's duty of obedience only applies to lawful instructions. Latent defects must be disclosed.
    (this multiple choice question has been scrambled)
  6. "Effective gross income" best describes:

    A. Gross income in an ideal situation, with no vacancy or collection losses
    B. Income minus debt services
    C. Gross income minus a figure for vacancy and collection losses
    D. Net income
    C. Gross income minus a figure for vacancy and collection losses

    Effective gross income is generated by a property, plus miscellaneous income, minus a figure for vacancy and collection losses.
    (this multiple choice question has been scrambled)
  7. In which situation is there no fiduciary relationship?

    A. Seller and the listing broker
    B. Principal and the agent
    C. Property manager and the owner
    D. Seller and the buyer
    D. Seller and the buyer

    The seller and buyer have no fiduciary relationship.
    (this multiple choice question has been scrambled)
  8. The rule that says a buyer will not pay more for a property than a comparable substitute best describes:

    A. The rule of substitution
    B. The rule of supply and demand
    C. The rule of conformity
    D. The rule of contribution
    A. The rule of substitution

    Buyers ultimately determine the value of a property. A buyer not pay more for a property than for a comparable substitute, which is why comparing is the most accurate determining factor of value.
    (this multiple choice question has been scrambled)
  9. Of the following, which is not an example of a freehold estate?

    A. Fee simple
    B. Defeasible fee
    C. Life estate
    D. Periodic tenancy
    D. Periodic tenancy

    A periodic tenancy is a leasehold estate
    (this multiple choice question has been scrambled)
  10. Upon arrival, the listing agent dealing with an elderly lady realizes that she would be happy receiving an offer for much less than market value. The agent decides to make a cash offer for the list price that the seller chose. The agent then sells the property for maket value. What duty has the agent breached?

    A. No breach has occured
    B. Confidentiality
    C. Disclosure
    D. Obedience
    C. Disclosure

    An agent has a duty to disclose the property's true value. The agent's behavior is regarded as self dealing.
    (this multiple choice question has been scrambled)
  11. Transferring one's right or obligations under a contract to another and being relieved of liability best describes

    A. Declaration
    B. Assignment
    C. Novation
    D. Consideration
    C. Novation

    An assignment does not relieve the withdrawing party of liability. A novation does.
    (this multiple choice question has been scrambled)
  12. How long does a claimant have to file a complaint based on Title VIII with the HUD Office of Equal Oppurtunity?

    A. 1 year
    B. 2 years
    C. 3 years
    D. 180 days
    A. 1 year

    Filing a lawsuit based on the Federal Fair Housing Act must be done within 2 years. A complaint would be filed with the HUD Office of Equal Oppurtunity within 1 year.
    (this multiple choice question has been scrambled)
  13. "Gross income" best describes:

    A. Income after expenses
    B. Income minus debt service
    C. Income before expenses
    D. Income plus debt service
    C. Income before expenses

    The total of all income generated from an investment property is its gross income.
    (this multiple choice question has been scrambled)
  14. What is market price?

    A. How much the lender is risking
    B. The replacement cost of the property
    C. The price the property actually sold for
    D. The price the property is likely to bring in an "arm's length" transaction
    C. The price the property actually sold for

    Market value is what the property is likely to sell for. Insurance value deals with the cost of replacement.
    (this multiple choice question has been scrambled)
  15. Which of the following is not true of the Federal Housing Administrator

    A. Helps buyers with low down payments
    B. Guarantees mortgage loans
    C. Administered by the Department of Housing and Urban Development
    D. Enacted by governmental legislation
    B. Guarantees mortgage loans

    The only entity that guarantees mortgages is the VA; FHA insures loans.
    (this multiple choice question has been scrambled)
  16. Which of the following does not derive from a city's police power?

    A. Building codes
    B. Zoning ordinances
    C. Developer's restrictive covenants
    D. Urban planning
    C. Developer's restrictive covenants

    All are governmental restrictions on land use except C, which is enacted by a private citizen.
    (this multiple choice question has been scrambled)
  17. A court order instructing an official (i.e. a sheriff) to sell property in order to pay a judgment is called:

    A. Deficiency judgment
    B. Attachement
    C. Foreclosure
    D. Writ of execution
    D. Writ of execution

    Foreclosure is the preceeding which declare a mortgage void and forces the sale of property to satisfy the debt. The court order directing an official to seize and/or sell the property is called the writ of execution.
    (this multiple choice question has been scrambled)
  18. Two non-management level licensees (both working for the same broker) are representing opposing sides of a transaction. This best describes:

    A. Split agency
    B. Subagency
    C. Exclusive agency
    D. Disclosed dual agency
    A. Split agency

    Split agency occurs when one salesperson represents the buyer and another salesperson from the same firm represents the seller. In this split agency, the broker alone is a dual agent.
    (this multiple choice question has been scrambled)
  19. What is the body of law that governs negotiable instruments?

    A. Doctrine of emblements
    B. Rule of conformity
    C. Statue of frauds
    D. Uniform Commercial Code
    D. Uniform of Commercial Code

    The UCC sets out certain requirements for negotiable instruments.
    (this multiple choice question has been scrambled)
  20. A property is valued at $100,000 and is taxed at 45 mills. The assessment rate on the property is 35%. Calculate the yearly taxes.

    A. $15.75
    B. $1,575.00
    C. $4,500.00
    D. $157.50
    B. $1,575.00

    To solve this problem, keep a simple formula in mind: take the appraised value ($100,000) x the assessment rate (35%). This will give the assessed value ($35,000). Next take the assessed value x the millage rate of 45; but remember to divide your answer by $1,000, as a mill means dollars per thousand. $100,000 x 35% x 45 / 1,000 = $1,575
    (this multiple choice question has been scrambled)
  21. Mortgages are recorder in order to:

    A. Transfer title to the mortgagee
    B. Create a valid lien
    C. Comply with Truth-in-Lending reglutaions
    D. Assure amortization payments
    B. Create a valid lien

    While the promissory note creates a debt, the mortgage is given to secure repayment of the debt; it becomes a lien against the property only when it is recorded.
    (this multiple choice question has been scrambled)
  22. If not given with the application, when must a lender give the required RESPA information to a buyer?

    A. Within 1 day
    B. Within 7 days
    C. Within 5 days
    D. Within 3 days
    D. Within 3 days

    A lender must give the buyer a good-faith estimate of settlement charges within 72 hours of the loan application.
    (this multiple choice question has been scrambled)
  23. The three most important aspects of a house are:

    A. Cost, value, and marketability
    B. Location, location, location
    C. Size, style, and function
    D. Marketability, uniqueness, and scarcity
    B. Location, location, location

    Where the property is located alone can contribute value to the property regardless of size, style, or function.
    (this multiple choice question has been scrambled)
  24. A closing conducted by a disinterested third party best describes a/an:

    A. Roundtable closing
    B. Escrow closing
    C. Lender closing
    D. Broker closing
    B. Escrow closing

    A closing conducted by a disinterested third party is an escrow closing. The roundtable closing involves all of the parties to the transaction signing documents at the same place at the same time.
    (this multiple choice question has been scrambled)
  25. In the state where bob lives, someone who receives a loan from a lender must transfer his/her property to the bank's holding company while the loan is outstanding. The document used to accomplish this is a/an

    A. Deed of trust
    B. Title insurance
    C. Mortgage
    D. Encroachment
    A. Deed of trust

    A mortgage does not transfer title to a lender; rather, it allows a lien to be posted against the property by a lender. With deed of trust, the homeowner actually transfers his property "interest" to a third party trustee, who holds title to the property while the loan is outstanding.
    (this multiple choice question has been scrambled)
  26. A buyer buys interest in a condominium in Mexico; she has one week's use of the property each year. Such an ownership is best describe as

    A. Time share
    B. Fee simple conditional
    C. Life estate
    D. Fee simple absolute
    A. Time share

    This person receives the right to use the property for one week only, she is thus "sharing time" of possession with 51 other owners.
    (this multiple choice question has been scrambled)
  27. The "subject property" best describes:

    A. The property compared to the base
    B. The property for which the value is sought
    C. The property surrounding the base
    D. The property currently on the market
    B. The property for which the value is sought

    The appraiser does not consider properties on the market. The subject is the property for which an opinion of value is sought, also called the base.
    (this multiple choice question has been scrambled)
  28. Which of the following could a real estate agent lawfully prepare?

    A. A real estate sales contract for buyer
    B. A land contract for a vendor
    C. An independent contractor's agreement with a broker
    D. A lease contract for a landlord
    C. An independent contractor's agreement with a broker

    The real estate agent could prepare the independent contractor's agreement, as he is a party to that agreement with the broker. The other contracts involve drafting agreements for third parties, an action that requires a license to practice law.
    (this multiple choice question has been scrambled)
  29. All of the following are examples of real property except:

    A. Drapes
    B. Shed
    C. Sump pump
    D. Bathtub
    A. Drapes

    Drapes are usually not considered real property. In some instances (i.e. drapes custom made to fit an unusual window), they can be considered real property
    (this multiple choice question has been scrambled)
  30. The agreement whereby a broker is entitled to be paid a commission by a buyer is a/an:

    A. Listing agreement
    B. Buyer broker contract
    C. Option
    D. Purchase agreement
    B. Buyer broker contract
    (this multiple choice question has been scrambled)
  31. What type of legal description is based on baseline and principal meridian?

    A. Rectangular survey system
    B. Lot and block
    C. Square foot average
    D. Metes and bounds
    A. Rectangular survey system

    The rectangular survey system divides an area into townships and ranges.
    (this multiple choice question has been scrambled)
  32. When a landlord raises the rent after a tenant complaints about code violations, what has occured?

    A. Constructive evictions
    B. Retaliation
    C. Unlawful detainer
    D. Self-help eviction
    B. Retaliation

    Raising the rent or filing for an eviction after a tenant has complained could be grounds for an unlawful eviction lawsuit.
    (this multiple choice question has been scrambled)
  33. The subject property has five bedrooms but only one bathroom. What could this situation be causing?

    A. An ideal situation
    B. Economic obsolescence
    C. Functional obsolescence
    D. A curable defect
    C. Functional obsolescence

    When something inherent in the subject property causes the lose of value, the property suffers from functional obsolescence
    (this multiple choice question has been scrambled)
  34. Which of the following is not party of the secondary market?

    A. Federal Home Loan Mortgage Corporation
    B. Federal Universal Mortgage Association
    C. Federal National Mortgage Association
    D. Government National Mortgage Association
    B. Federal Universal Mortgage Association

    The Federal Universal Mortgage Association is not a real association
    (this multiple choice question has been scrambled)
  35. What law is being violated when agents from different firms discuss and agree upon commission rates?

    A. Sherman Antitrust Act
    B. RESPA
    C. Statue of Frauds
    D. Truth-in-Lending Act
    A. Sherman Antitrust Act

    Discussing commission rates with other licensees is regarded as price fixing under the Sherman Antitrust Law.
    (this multiple choice question has been scrambled)
  36. After listing a property that the agent believes is overpriced, the agent returns to the office and vents his frustration to a fellow licensee at the brokerage. Which duty has the agent breached?

    A. Loyalty
    B. Disclosure
    C. Accountability
    D. Reasonable skill and care
    A. Loyalty

    If an agent decides to take the listing at the price indicated by the seller, the agent must be loyal to the seller and not imply that the list price is unreasonable.
    (this multiple choice question has been scrambled)
  37. A residential tenant with a month-to-month lease enjoys which leasehold estate?

    A. Periodic tenancy
    B. Joint tenancy
    C. Estate for years
    D. Tenancy at will
    A. Periodic tenancy

    Periodic tenancy is a lease that automatically renews itself from period to period
    (this multiple choice question has been scrambled)
  38. As an agent is showing a house to a customer, the agent notices a large vertical crack in the basement wall. What is the agent's duty?

    A. Notify the listing agent
    B. Tell the broker
    C. Nothing
    D. Immediately disclose the situation to the buyer
    C. Nothing

    The crack on the wall is obvious and falls into the category of patent defects. The agent has no duty to disclose patent defects.
    (this multiple choice question has been scrambled)
  39. A brief summary of a property's history, listing all recorded documents that may affect the title is a/an:

    A. Title insurance
    B. Certificate of title
    C. Abstract of title
    D. Title report
    C. Abstract of title

    An abstract of title is evidence of marketable title. It is prepared by an atorney acting as a neutral party in the closing.
    (this multiple choice question has been scrambled)
  40. According to the Lead Based Paint Hazard Reduction Act, what can happen to a licensee if he or she fails to give a buyer the lead-based paint pamphlet and disclosures?

    A. One year in jail
    B. A $10,000 fine
    C. Be ordered to pay three times the compensatory damages in a lawsuit
    D. All of the above
    D. All of the above

    The EPA has the power to apply all of these santions.
  41. The mortgagor is:

    A. The lender
    B. The broker
    C. The seller
    D. The borrower
    D. The borrower

    The borrower is giving the mortgage to the lender; thus, the borrower is the mortgagor.
    (this multiple choice question has been scrambled)
  42. The leasehold estate that can be terminated by either party and can not be assigned is:

    A. Periodic tenancy
    B. Joint tenancy
    C. Tenancy at will
    D. Tenancy at sufferance
    C. Tenancy at will

    Tenancy at will can not be assigned; it is based on the wishes of the parties.
    (this multiple choice question has been scrambled)
  43. When showing a downtown condominium, a licensee brags, "This unit propbably has the best view of Lake Michigan in the whole city!" Would this statement have legal consequences?

    A. No-only written statements can be construed as negligent misrepresentations
    B. Yes-assuming the condo does not have the best view of the lake.
    C. Yes-the licensee is stating a fact and could be held liable
    D. No-this is "puffing" and is the agent's opinion.
    D. No-this is "puffing" and is the agent's opinion.

    Bragging about a property is allowable, but an agent must use care. Saying "the basement never leaks," for example, might be a cause for legal action if the basement does leak.
    (this multiple choice question has been scrambled)
  44. What expenses would not be found on a good faith estimate?

    A. Items payable with loan & other charges
    B. Pre-paid items
    C. Moving costs
    D. Estimated monthly payment
    C. Moving costs

    The good faith estimate provides the buyer with the costs they will incur to take title to the land.
    (this multiple choice question has been scrambled)
  45. The rule that says a buyer is expected to reasonably inspect the property, instead of relying on what he or she was told. This best desribes:

    A. The doctrine of emblements
    B. The doctrine of estoppel
    C. The doctrine of caveat emptor
    D. The doctrine of stare decisis
    C. The doctrine of caveat emptor

    Caveat Emptor literally translates as, "let the buyer beware"
    (this multiple choice question has been scrambled)
  46. Executor Fred calls agent Tom to list a vacant tract of land, instructing him to list the land for $700,000. Several weeks later, agent Tom becomes aware of a developer who would pay as much as $1,000,000 for the property. Tom thereupon submits a full-price offer to the owner and purchases the property. Tom then resells the property to the developer and pockets a $300,000 profit. Which one of the following statements is correct?

    A. Tom violated the law by not providing notice of information that would affect Fred.
    B. Tom was in compliance with the law, since Fred had established the listing price and received the full amount
    C. Tom did not violate the law - it is not illegal for licensees to purchase listed property
    D. Tom violated the law by failing to waive the commission on property purchased for his/her own use.
    A. Tom violated the law by not providing notice of information that would affect Fred.

    Tom had a duty to inform Fred of the information, regardless of the listing price.
    (this multiple choice question has been scrambled)
  47. What is it called when personal property is transformed into real property?

    A. Trade fixture
    B. Fixture
    C. Actual annexation
    D. Constructive annexation
    C. Actual annexation

    Constructive annexation occurs when property is so closely related to real property that the law treats it as a real property, even though it is not physically attached. The fixture is the item that was transformed.
    (this multiple choice question has been scrambled)
  48. An investor buys a single-family rental property with an initial basis of $150,000. Assuming 30 year straight-line depreciation, what is the basis of the property after 10 years?

    A. $100,000
    B. $120,000
    C. $200,000
    D. $50,000
    A. $100,000

    The annual depreciation would be $5,000 (150,000 / 30), thus 10 years' depreciation would be $50,000 (10 x 5,000). The basis after 10 years is 150,000 - 50,000 = $100,000.
    (this multiple choice question has been scrambled)
  49. Which of the following is an involuntary specific lien?

    A. Mortgage
    B. Mechanic's lien
    C. IRS Taxes
    D. Easement
    B. Mechanic's lien

    The IRS is a general involuntary lien against all items owned by an individual (including, but not limited to , real estate). The mechanic's lien is an involuntary specific lien against property worked on by a contractor. The mortgage is a voluntary specific lien which is given freely by the landowner to the buyer. The easement is not a lien, although it is an encumbrance on the property.
    (this multiple choice question has been scrambled)
  50. What document is evidence of the relationship between property owner and property manager?

    A. Buyer broker contract
    B. Lease
    C. Property management agreement
    D. Listing agreement
    C. Property management agreement

    A listing agreement is between seller and broker. A buyer broker contract is between buyer and broker. A lease is between landlord and tenant.
    (this multiple choice question has been scrambled)
  51. What law requires lenders to limit the amount of funds that can be held in reserves?

    A. The Truth-in-Lending Act
    B. RESPA
    C. Regulation Z
    D. Title VIII
    B. RESPA

    Although lenders are touched and concerned with A, B, And D, RESPA sets limits concerning reserves.
    (this multiple choice question has been scrambled)
  52. Which approach to value would be most appropriate when appraising a vacant factory?

    A. Income approach
    B. Cost approach
    C. Summation approach
    D. Market approach
    B. Cost approach

    Unusual structures, where comparable properties are not readily available, are best appraised using the cost approach to value.
    (this multiple choice question has been scrambled)
  53. What refers to the interest in real property created by the execution of a valid sales contract?

    A. Title
    B. Equitable title
    C. Inequitable title
    D. Future title
    B. Equitable title

    A buyer's interest (at the time the offer is accepted) is only a future interest until the transaction comes to fruition.
    (this multiple choice question has been scrambled)
  54. "Plants and trees cultivated for harvest" best describes:

    A. Fructus naturales
    B. Emblements
    C. Fructus industrales
    D. Trade fixture
    C. Fructus industrales

    Fructus industrales would be crops, forests or other plants intended to benefit farmers of such plants. Tenant farmers' crops, grown for the benefit of thelandowner, would be trade fixture.
    (this multiple choice question has been scrambled)
  55. When rented property is sold by the owner, the outstanding leases:

    A. Expire
    B. Must be renegotiated
    C. Are automatically terminated
    D. Remain binding upon the new owner
    D. Remain binding upon the new owner

    A lease goes with the land. A new owner would be subject to any existing leases.
    (this multiple choice question has been scrambled)
  56. What pledges property as security for a loan?

    A. Habendum clause
    B. Collateral clause
    C. Defeasence clause
    D. Hypothencation clause
    D. Hypothencation clause

    The hypothencation clause in a mortgage literaly states that the real property is being pledged as security for repayment of a promissory note/loan. The habendum clause literally transfers real estate in a deed, not a mortgage; it is often referred to as the "to have and to hold" clause. The defeasence clause in a mortgage says that once the promissory note is paid, the mortgage is void. There is no such clause as the collateral clause.
    (this multiple choice question has been scrambled)
  57. The Real Estate Settlement Procedures Act was enacted to

    A. To protect consumers from abusive lending practices.
    B. To settlement costs for escrow
    C. To provide detailed information concerning cost of interest and interest paid over the life of a loan.
    D. Provide avenues of additional compensation for eal estate sales agents
    A. To protect consumers from abusive lending practices.

    RESPA ensures that consumers are provided with important, accurate, and timely information about the actual costs of selling or closing a transaction, not about the cost of obtaining a loan and interest. The cost of obtaining loans and interest are provided under Regulation Z of the Truth-in-Lending Act.
    (this multiple choice question has been scrambled)
  58. What type of land use doesn't comply with the zoning restriction for where it is located, but is permitted because it benefits the public?

    A. Conditional use
    B. Non-conforming use
    C. Spot zone
    D. Inverse condemnation
    A. Conditional use

    Conditional use (hospitals, schools etc) usually do not comply with zoning limitations.
    (this multiple choice question has been scrambled)
  59. In what type of installment agreement does the buyer make payments for the right to possession, but does not receive the title until most or all of the terms have been met?

    A. Lease
    B. Land contract
    C. Purchase agreement
    D. Proprietary lease
    B. Land contract

    In a land contract, the seller retains title until the contract has been satisfied.
    (this multiple choice question has been scrambled)
  60. Transferring one's rights or obligations under a contract to another with secondary liablility is called:

    A. Novation
    B. Consideration
    C. Assignment
    D. Declaration
    C. Assignment

    Novation relieves the withdrawing party of liability. Assignment does not.
    (this multiple choice question has been scrambled)
  61. When must a buyer be allowed to inspect the HUD-1 settlement?

    A. Two weeks before title transfer
    B. Upon creating escrow instructions
    C. One business day before closing
    D. The day after closing
    C. One business day before closing

    The buyer has a right to inspect the HUD-1 settlement statement one day prior to closing. If discrepancies are discovered, the transaction cannot close until they are corrected.
    (this multiple choice question has been scrambled)
  62. A broker, acting as a property manager, may refuse to rent to individuals because:

    A. They practice an unusual religion
    B. They are poor credit risks
    C. There is no male head of household
    D. They represent a racial group not already present in the facility.
    B. They are poor credit risks

    Not renting to someone because of religion, gender, or race is a violation of the Federal Fair Housing Act.
    (this multiple choice question has been scrambled)
  63. A property has been renting for $750 per month. Based on comparable, the GRM is 110. What is the indicated value of the property?

    A. $99,000
    B. $990,000
    C. $68,182
    D. $82,500
    D. $82,500

    The indicated value using a GRM (Gross Rent Multiplier) is the montly rent x GRM. in this case, $750 x 110 = $82,500
    (this multiple choice question has been scrambled)
  64. The leasehold estate that has a specified termination date best describes a/an:

    A. Joint tenancy
    B. Periodic tenancy
    C. Tenancy at will
    D. Estate for years
    D. Estate for years

    An estate for years has a specified termination date. If landlord and tenant agree to continue the tenancy affter termination, it converts to tenancy at will.
    (this multiple choice question has been scrambled)
  65. Mom & Dad's Cafe is located in an area that has recetly been rezoned "residential." Will they be allowed to continue operating as a restaurant?

    A. No, because a non-conforming usage is illegal
    B. No, because such use is not allowed in a residential zone
    C. Yes, because the restaurant will be entitled to a variance
    D. Yes, because the restaurant will be " grandfathered" into the area
    D. Yes, because the restaurant will be " grandfathered" into the area

    Most rezonings will allow for existing properties that do not conform to the new zoning to be "grandfather" in and continue to operate. The "grandfather" clause could be lost in the future for a variety of reasons.
    (this multiple choice question has been scrambled)
  66. The law that requires buyers and sellers be given an itemization of all costs and expenses of the buying and selling of a home is:

    A. Truth-in-Lending Act
    B. RESPA
    C. Equal Credit Opportunity Act
    D. Fair Credit Reporting Act
    B. RESPA

    The Real Estate Settlement Procedures Act requires that a thorough listing of the debits and credits due a buyer and seller be issued at the time of closing. Truth-in-Lending applied only to the borrower; it provides the borrower a disclores of the costs of getting a loan.
    (this multiple choice question has been scrambled)
  67. Fee simple absolute estates are all of the following except:

    A. Conditional
    B. Inheritable
    C. Transferable
    D. Perpetual
    A. Conditional

    If a condition exists in the deed, the estate is fee simple conditional. Fee simple absolute implies there are no conditions in the deed.
    (this multiple choice question has been scrambled)
  68. A closing with all parties presetn is a/an:

    A. Broker closing
    B. Roundtable closing
    C. Escrow closing
    D. Lender closing
    B. Roundtable closing

    In many states, all parties to the transaction sign documents and transfer title at the same place and time; this is referred to as a roundtable closing.
    (this multiple choice question has been scrambled)
  69. When an agent represents both parties in the same transaction, it is called:

    A. Split agency
    B. Disclosed dual agency
    C. Subagency
    D. Exlusive agency
    B. Disclosed dual agency

    Split agency refers to an in-company transaction. Exclusive agency implies the broker represents only one side. Dual agency can only occur when both parties consent to it.
    (this multiple choice question has been scrambled)
  70. Roberta wishes to build her garage 2 feet from her side lot line. City codes calls for all sides setbacks to be at least 5 feet. She will need to get what to be able to legally proceed and be assured that future owners will not have a problem?

    A. Non-conforming use
    B. Spot zoning approval
    C. A waiver
    D. A variance
    D. A variance

    A variance will provide permanent permission to deviate from setback rules.
    (this multiple choice question has been scrambled)
  71. The listing agent discriminates against a minority group buyer. If the seller were to be held responsible for the actions of the agent, it would be an example of:

    A. Fraud
    B. Vicarious liability
    C. Dual liability
    D. Intentional misrepresentation
    B. Vicarious liability

    Vicarious liability occurs when a client is held liable for the actions of his/her agent.
    (this multiple choice question has been scrambled)
  72. How often must a property manager report to the owner?

    A. Quarterly
    B. Weekly
    C. Every year
    D. Every month
    A. Quarterly

    Unless otherwise specified in the property management agreement, the amanger must report to the owner on a quarterly basis.
    (this multiple choice question has been scrambled)
  73. An unlicensed property manager can do all of the following except:

    A. Showing units
    B. Maintenance
    C. Negotiate lease terms
    D. Furnishing published information
    C. Negotiate lease terms

    Most states require anyone who lists, sells, leases, exchanges or otherwise negotiates in real estate of others must be licensed
    (this multiple choice question has been scrambled)
  74. When can a property manager use a self-help eviction?

    A. Only in residential tenancies
    B. Never
    C. Always
    D. Only in non-residential tenancies
    D. Only in non-residential tenancies

    A landlord may only use a utility shut-off or lockout against a non-residental tenancy
    (this multiple choice question has been scrambled)
  75. The act of the government taking private property for public use is

    A. Escheat
    B. Taxation
    C. Condemnation
    D. Eminent domain
    C. Condemnation

    The act is condemnation, the power is eminent domain.
    (this multiple choice question has been scrambled)
  76. Which of the following would terminate a listing agreement?

    A. Change in asking price of the property
    B. Failure of a buyer to secure financing
    C. Death of the principal
    D. Bankruptcy of the salesperson
    C. Death of the principal

    The death of one of the parties would terminate the agreement.
    (this multiple choice question has been scrambled)
  77. A lead-based paint disclosure form is required for all residential dwellings built before January 1, 1978. When applicable, who must sign the form?

    A. Seller & Buyer
    B. Buyer, seller and both agents
    C. Seller only
    D. Seller and listing agent
    B. Buyer, seller and both agents

    All parties must sign the disclosre form. Both agents are equally liable for compliance.
    (this multiple choice question has been scrambled)
  78. Eric and Sue purchase a new home and lot which is accessible only through a 12-foot-wide easement across Mr. Wilson's property. In this situation, the land owned by Eric and Sue is referred to as the:

    A. Servient tenement
    B. Appurtenancy
    C. Beneficiary
    D. Dominant tenement
    D. Dominant tenement

    The land benefited by an appurtenant easement is called the dominant tenement. The land burdened by the appurtenant easement is called the servient tenement. The appurtenancy is the right that the appurtenant easement provides the dominant tenement. The beneficiary is the owner of the dominant tenement.
    (this multiple choice question has been scrambled)
  79. A property management account:

    A. Can earn interest that gets paid to the broker
    B. Can earn interest
    C. Must be non-interest bearing
    D. Can earn interest that gets paid to the tenant
    B. Can earn interest

    A property management trust account can earn interest that gets paid to the property owner.
    (this multiple choice question has been scrambled)
  80. A real estate owner who lease the property is called

    A. Mortgagee
    B. Vendor
    C. The lessee
    D. The lessor
    D. The lessor

    The lessor and lessee are the parties to the lease. The lessor (the owner) is the giver of the leasehold estate, and the lessee (the tenant) is the receiving party in the lease.
    (this multiple choice question has been scrambled)

What would you like to do?

Home > Flashcards > Print Preview