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Real Estate Final
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Questions in this quiz (76)
1The "bundle of rights" does not include the right to:
- ALease the property to a tenant
- BDo nothing with the property
- CImpede air traffic
- DMortgage the property
2Personal property is
- Achattels
- Bpersonality
- Cusually movable
- Dall of the above
3A freehold estate whose duration is limited to the lifetime of a specified person is called a/an
- Afee simple subject to a condition subsequent
- Bestate for years
- Cestate of inheritance
- Dlife estate
4A leasehold estate
- Agives the tenant the right of exclusive possession
- Bhas an indefinite duration
- Cis a nonpossessory interest
- Dis an estate in reversion
5when property is held in joint tenancy, upon the death of one of the joint tenants, his or her interest in the property automatically:
- Avests in his or her spouse
- Bis transferred to his or her heirs
- Cpasses to the other joint tenant(s)
- Dbecomes a term tenancy
6when a fee simple owner transfers title by deed, it is presumed that the new owner (the grantee) receives a/an:
- Aterm tenancy
- Bestate in remainder
- Cjoint tenancy
- Dfee simple absolute
7the highest and most complete form of ownership, representing the whole "bundle of rights," is called a/an:
- Aqualified fee
- Bestate for years
- Cfee simple absolute
- Destate in reversion
8in addition to requiring a deed to be in writing, the statute of frauds also requires that the deed must be:
- Adelivered after the grantor's death
- Brecorded before it is acknowledged
- Csigned by the grantee
- Dsigned by the grantor
9in all states, a valid deed must contain:
- Aan adequate description of the property
- Ba habendum clause
- Ca recital of consideration
- Dwarranties
10an adverse possessor's use and possession of the land must be:
- Aregistered with the county clerk
- Bopen and notorious
- Cby permission of the true owner
- Dby permission of the state government
11before a deed can be recorded, it must be:
- Adelivered to the grantee
- Backnowledged by the grantor
- Ccertified by a title company
- Dpublished in a title report
12the government's power to condemn private property is called the power of:
- Aeminent domain
- Bdedication
- Cescheat
- Daccession
13a valid deed transfers title when
- Athe grantor delivers it to the grantee, who accepts it
- Bit is acknowledged by the grantor
- Cthe grantee signs it
- Dit is recorded
14an easement on a piece of property
- Aencumbers the property
- Balways has a positive impact on value
- Calways has a negative impact on value
- Dnone of these
15the basis for zoning and other land use control laws is:
- Athe government's police power
- Beminent domain
- Cthe civil rights act of 1866
- Dthe government's power to tax property on the basis of value
16unlike general real estate taxes, special assessments are levied:
- Ato pay for a specific improvement
- Bevery year
- Cagainst all taxable real property within a taxing district
- Dall of the above
17without exception, to have legal capacity to enter into a contract a person must be:
- Aat least 21 years old
- Bable to read and sign his name
- Cregistered with the superior court
- Dmentally competent
18a contract is not formed if the offer is
- Arevoked before its accepted
- Baccepted before its expired
- Crevoked after its accepted
- Daccepted without any modification of its terms
19consideration is
- Anot required for contracts that have been put into writing
- Bnot required if the contract has a lawful objective
- Csomething of value exchanged by the contracting parties
- Dformal execution of the contract in the presence of at least two wintesses
20the statute of frauds applies to
- Aa purchase agreement for a house
- Ba purchase agreement for vacant land
- Ca listing agreement for a piece of commercial real estate
- Dall of the above
21a contract is voidable if one of the parties:
- Asigned it under duress
- Bunder misrepresentation to persuade the other to enter into it
- Chas the right to rescind it
- Dall of the above
22when an offer makes a counteroffer
- Ano contract is formed unless the original offeror accepts the counteroffer
- Bthe original offeror is required to accept the offeree's modified terms
- Cif the original offeror does not accept the offerree's modifications, they have a binding contract on the terms originally offered
- Dit create a binding contract on the offeree's modified terms, unless the modifications are unreasonable
23a broker's commission is usually a
- Apercentage of the property's listing price
- Bpercentage of the property's appraised value
- Cpercentage of the property's sales price
- Dflat fee based on the anticipated difficulty of selling the property
24in most states, in which of the following situations would a seller NOT owe a commission?
- Athe transaction ends because theres a financing contingency in the purchase agreement and the buyer isn't able to make the necessary loan
- Bthe seller and buyer agree to walk away from the transaction
- Cthe seller discovers at the last minute that she does not have a marketable title
- Dthe seller has a change of heart and decides not to sell
25a dual agent must
- Adisclose all confidential information to both the buyer and the seller
- Bkeep each party's negotiating position confidential
- Cavoid giving advice to either party
- Dsubmit conflicts between the buyer and the seller to arbitration
26a real estate license is required for anyone who
- Asells or leases their own property
- Bsells or leases property for other people for compensation
- Call of the above
- Dnone of the above
27when the parties agree to terms on a specific property, a contract spelling out the agreement is drawn up and signed by
- Athe broker and the seller
- Bthe broker and the buyer
- Cthe sales associate and the seller
- Dthe buyer and the seller
28the listing agreement will NOT usually contain the
- Aasking price
- Bselling price
- Clocation of the property
- Dauthority granted to the broker
29Essential elements of any valid contract consists of (1) an offer (2) an acceptance (3) consideration (4) parties with capacity (5) a lawful purpose (6) in writing
- ATrue
- BFalse
30the commission paid in the real estate brokerage industry is normally
- Aa percentage of the mortgage
- Ba fixed dollar amount per transaction
- Cpercentage of the gross sales price
- Dincluded as discount points paid at the closing
31an example of a restricted covenant is a requirement that a house be a minimum size
- ATrue
- BFalse
32____is defined as the possibility of loss resulting from not being able to convert an asset into cash quickly should the need arise
- Abusiness risk
- Bfinancial risk
- Cpurchasing power risk
- Dliquidity risk
33a _____ is a legal document used to transfer ownership rights to real estate from one party to another
- Aplat
- Blease
- Csales contract
- Ddeed
34a deed that transfers any interest which a grantor may or may not have in a property without promising that the grantor actually has such an interest is called a(n) ______ deed.
- Abargain and sale
- Bquitclaim
- Cunencumbered
- Dspecial warantee
35before a deed can be recorded, most states require that
- Athe deed be signed by the grantee
- Bthe deed be acknowledged by the grantor
- Cthe grantor must sign in the presence of a witness who also signs
- Dthe grantor must be a witness
36in addition to the standard requirements for a contract to be valid, the statute of frauds requires contracts involving real estate
- Ato be for a lawful purpose
- Bto provide adequate consideration from the buyer
- Cto identify parties with capacity
- Dto be in writing
37if the terms in the purported acceptance differ from those of the offer, then
- Aa temporary contract is formed
- Ba contract is still formed
- Cno counteroffer is made
- Da counteroffer is made
38a compilation of all recorded documents that affect a given piece of real estate is known as a title
- Aopinion
- Binsurance
- Cabstract
- Ddeed
39the commission paid in the real estate brokerage industry is normally
- Aa percentage of the mortgage
- Ba fixed dollar amount per transaction
- Ca percentage of the sales price
- Dincluded as discount points paid at the closing
40in a real estate transaction, the debt obligation secured by a ____ is generally acknowledged by a _____
- Alease, defeasance
- Bcovenant, acceleration
- Cmortgage, promissory note
- Dmortgagor, deed of trust
41in periods of rising interest rates, the borrower may be able to sell his property for a higher price if the new owner can assume the existing loan. Because this is not advantageous to the lender, a ____ may be included in the promissory note to preclude assumption
- Adue-on-sale clause
- Bdefeasance clause
- Cprepayement clause
- Dacceleration clause
42which of the following categories account of the largest portion of all mortgage credit in the US?
- A1-4 family residential
- Bmulti-family residential
- Ccommercial
- Dfarm
43if the mortgagor fails to make payments or defaults on other terms of the mortgage agreement, the mortgagee can begin _____ proceedings.
- Aequity of redemption
- Bdue-on-sale
- Cforeclosure
- Dhypothecation
44Credit history is part of a mortgage loan application
- ATrue
- BFalse
45down payment on a purchase can only come from your personal savings
- ATrue
- BFalse
46loan origination occurs in the secondary mortgage market within the US housing finance system
- ATrue
- BFalse
47a key to minimizing risk in home loans is for the lender to have extensive local market knowledge
- ATrue
- BFalse
48after a commercial loan is made, a lender may annually ask for
- Afinancial statements
- Brent rolls
- Cproof of insurance
- Dall of the above
49the debt coverage ratio
- Ashould be greater than one
- Bis meaningless
- Cshould be less than one
- Ddoesn't apply to commercial loans
50the primary function of the real estate brokerage industry is to
- Amatch properties and customers
- Bguide buyers and sellers through the complexities of real estate transaction
- Cprovide legal representation to clients
- Da and b only
51an amortization schedule that is for 25 years:
- Awill have a smaller payment than one for 20 years other factors being equal
- Bwill have a larger payment than one for 20 years other factors being equal
- Cis illegal
- Dnone of the above
52a listin is a written agreement between a property owner and a real estate broker authorizing the broker to sell or lease a particular property
- ATrue
- BFalse
53if you sell your house and intentionally fail to disclose that you have covered all signs of a leaky basement by painting over the walls, you are probably guilty of misrepresentation
- ATrue
- BFalse
54after a commercial loan is made, a lender may annually ask for
- Afinancial statements
- Brent rolls
- Cproof of insurance
- Dall of the above
55the debt coverage ratio
- Ashould be greater than one
- Bis meaningless
- Cshould be less than one
- Ddoesn't apply to commercial loans
56the primary function of the real estate brokerage industry is to
- Amatch properties and customers
- Bguide buyers and sellers through the complexities of real estate transactions
- Cprovide legal representation to clients
- Da and b only
57which of the following statements is not true about brokers?
- Abrokers serve as an intermediary in a transaction
- Bbrokers receive compensation in the form of commission for their services
- Cbrokers often specialize in certain property types
- Dbrokers take ownership of the item being transferred for at least a brief moment in time
58in the legal relationship known as "agency," the ____ is authorized by the ____ to transact business on his or her behalf.
- Aprincipal, agent
- Bagent, principal
- Cseller, broker
- Dbroker, agent
59when a single broker represents both parties in a real estate transaction, a ____ agency may exist
- Afiduciary
- Bbuyer/seller
- Cdual
60which of the following is a true statement?
- Amortgages are originated in the primary market
- Bmortgages are sold in the primary market
- Cmortgages are originated in the secondary market
- Dmortgages are originated in the underground market
61which of the following is true?
- Abad credit lasts forever
- Bhome mortgages account for the majority of mortgages in the US
- Cspouses have no rights to property ownership
- Demployment history doesn't matter in mortgage financing
62personal property is
- Amovable
- Balso called chattels
- Cmust be left with the property
- Da and b
63although most promissory notes require a series of future periodic payments to service the debt, most notes contain a provision that make the full amount (plus interest owed to date) immediately due and payable should a borrower default on the note. This provision is known as:
- Adeficiency judgement
- Bhypothecation
- Cprepayment clause
- Dacceleration clause
64______ refers to physical land and buildings, while ______ consists of the benefits gained from owning land and buildings
- Apersonal property, real property
- Breal property, personal property
- Creal property, real estate
- Dreal estate, real property
65the primary difference between freehold and leasehold estates is
- Athe number of rights is greater with leasehold estates
- Bleasehold estates involve property that have no liens
- Ca freehold interest is an ownership interest
- Da freehold estate can only possessory
66a claim on property as security for a debt or other obligation is known as a(n)
- Aenroachment
- Blien
- Ceasement
- Dprofit
67governmental powers over private property rights include
- Apower of taxation
- Bpower of escheat
- Cpolice power
- Dall of the above
68the primary difference between a special warranty deed and a general warranty deed is that
- Ain a general warranty deed, the promises made the grantor only apply to events that occurred during the grantor's ownership of the property
- Bin a general warranty deed, the promises made by the grantee only apply to events that occurred during the grantee's ownership of the property
- Cin a special warranty deed, the promises made by the grantor only apply to events that occurred during the grantor's ownership of the property.
- Din a special warranty deed, the promises made by the grantee only apply to events that occurred during the grantee's ownership of the property
69an offer becomes an enforceable contract when it is accepted by the party who
- Amakes it
- Breceives it
- Ctenders it
- Ddelivers it
70a compilation of all recorded documents that affect a given piece of real estate is known as title
- Aopinion
- Binsurance
- Cabstract
- Ddeed
71the legal right to ownership of land is demonstrated in the
- Alease
- Bdeed
- Clisting agreement
- Dsales contract
72amortization is the
- Apractice of charging interest on a loan
- Bprocess of gradually retiring a debt by periodic payments
- Ccompounding of interest
- Duse of debt to enhance the rate of return
73in order to establish good credit you should
- Ahave at least 3 lines of credit (credit cards, student loans, etc)
- Bhave all payments in a timely manner
- Creview your credit history annually
- Dall of the above
74eminent domain is defined as "the use of land that produces the greatest long term economic return to the owner"
- ATrue
- BFalse
75the debt coverage ratio must be greater than 1 or you're losing money
- ATrue
- BFalse
76co-signing a note for someone else is not only a nice thing but a smart business move
- ATrue
- BFalse
Information
- Description
- Real Estate Principles
- Author
- merrellsamantha
- Language
- English
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