PSI National Exam for Real Estate

Real property may be encumbered by conditions or restrictions that are written into the deed. These encumbrances are often called:

CCR

The letters CRV stand for:

Certificate of Reasonable Value.

A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store?

Conditional use permit or zoning varience

Which type of business ownership has the disadvantage of being subject to double taxation?

Corporation

When appraising a special purpose building such as a school or church, the appraiser would most likely have to use which approach to value?

Cost

The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing?

Credit buyer $110,000; debit seller $110,000

At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?

Debit seller $300; credit buyer $300

Which is true of BOTH special assessments and ad valorem taxes

Deliquent payment is grounds for sale of property

An agent shows a home to a couple and mentions that it has a lovely fireplace in the living room. After buying the home, the buyers and agent discover that the brick fireplace is just a decorative fireplace and is not "wood burning." Which of the following would BEST protect the agent from financial loss?

E&O coverage

Another name for fructus industriales is

Emblements

What act prohibits discrimination on the basis of race, color, nationality, sex, marital status or age in the granting of credit?

Equal Credit Opportunity Act

The power of the government to seize owner-less land is called:

Escheat

An owner agrees to pay a commission if his property is sold but doesn't want to sign a listing agreement. What type of agency is this?

Express

Which of the following may be considered prima facie evidence of discrimination by a broker?

Failure to display the equal housing opportunity poster at the broker's place of business

Legislation that was specifically designed to provide for a national policy of fair housing was the:

Fair Housing Act of 1968.

True or False A general warranty deed absolutely guarantees good title regardless of flaws of title, unrecorded claims, undisclosed encumbrances, or fraud

False

True or False A license can be inherited.

False

True or False Appraisers are not bound by the fair housing laws.

False

True or False Lenders who make FHA insured loans do not need to be approved by HUD.

False

True or False Mechanic's liens do NOT take priority over other mortgages.

False

True or False The loan origination fee is prepaid interest and will lower your monthly payment

False

A group similar to Fannie Mae and Freddie Mac, except that it purchases agricultural loans and issues guaranteed mortgage-backed securities is

Federal Agricultural Mortgage Corporation

A group which buys mortgages from savings and loans thereby providing them liquidity for their mortgage assets is

Federal Home Loan Mortgage Corporation

A group which buys conventional and FHA and VA backed loans is

Federal National Mortgage Association

A general warranty deed contains how many covenants?

Five

An item of personal property which has been permanently attached to real property such as a light fixture or a bathtub is known as a

Fixture

The act that ensures that nonresident aliens and foreign corporations pay income tax based on gains from the disposition of U.S. real property is the

Foreign Investment and Real Property Tax Act

Land ownership extends

From the center of the earth and above the earth to infinity.

Which rule-of-thumb version is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000?

GRM

Which of the following BEST illustrates the concept and intent of a buffer zone?

Garden apartments located between a single-family residential neighborhood and a shopping center.

A group which is under the auspices of the Housing and Urban Development (HUD) and which acquires loans for urban renewal projects, housing for the elderly, and other federal housing programs is

Government National Mortgage Association

If a complaint is filed against a property manager for discrimination, the complaint is filed with

HUD

A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold goes the tenant have?

Holdover tenancy

The escrow officer or closing agent MUST give information regarding the sales price and seller's social security number to

IRS

Commissions paid to salespersons must be reported on

IRS 1099 MISC form

Eminent Domain, Escheat, and Adverse Possession are what kind of transfer?

Involuntary

A mechanic's lien for an unpaid swimming pool would be an example of a:

Involuntary specific lien

What is the BEST feature of the metes and bounds method of describing land?

It can be used to describe land of any shape.

If the owner of the servient estate buys the land which is the dominant estate, what happens to the easement?

It is terminated

Water rights that apply to ocean front and lake front property (lapping water) are

Littoral

The new 1988 Federal Fair Housing Act went into effect:

March 12, 1989

Which of the following approaches MOST reliably estimates the sales price of a single-family residence?

Market data

Highrise developments which combine offices, stores, theaters, and apartments, and other facilities in a single building are called

Mixed Unit Developments (MUD's)

A couple are moving to a new city. They have decided to rent temporarily before buying a house to see which part of the city they would like to live in. What type of lease would BEST suit the couple's needs?

Month-to-month lease

What is the term used for the person or organization who acts as an intermediary for the purpose of obtaining Financing?

Mortgage broker

Individuals who act as intermediaries between the borrower and the lender, qualifying the buyer and finding lenders are

Mortgage brokers

For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?

Mortgage loan interest, local property taxes, mortgage loan origination fees

A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an automatic renewal clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply with the lease term?

No notice is required

In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers

One

Underground water sources such as springs, geysers, and underground streams are known as:

Percolating waters

A development where different land uses are combined in one area, for example, housing, recreation and businesses in one development is called a

Planned Unit Development (PUD)

Mortgages, mechanic, judgments are what type of lien?

Private

The principle that states that the value of an inferior property is increased by being near a better property, and the value of the better property is decreased by being near an inferior property, is called

Progression and regression

The priority of liens with regard to who is paid first in a foreclosure is

Property taxes, mechanic's liens, all other mortgages by date recorded

This clause insures that the broker will receive a commission if his client buys the house within a certain time period after the listing agreement has expired.

Protection Clause

In which type of owner financing does the buyer receive title at the time of sale?

Purchase Money Mortgage

The real estate licensee who accepts an undisclosed fee for referring a buyer to a specific title company may be in violation of

RESPA

An odorless, radioactive gas that can cause cancer

Radon

When more than one approach to value is applied to a property and different indications of value are produced, how should the final estimate of value be determined?

Reconciliation

The land description T3N, R4W Principal Meridian refers to what method of property description?

Rectangular survey.

Which of these Federal laws regulates the advertisement of a lender's credit terms (rates, payment, etc.)?

Regulation Z

If conditions for purchase are included in a deed and these conditions are violated, what is the penalty?

Return of the property to the original owner

Water rights that apply to land adjacent to running water are called:

Riparian

Which method of determining value is generally the best one and the most used?

Sales Comparison

The group of lenders who facilitate the buying and selling of mortgages that have been made by the primary mortgage market, by taking over loans that primary lenders have originated is known as

Secondary lenders

The covenant in a general warranty deed that ensures the owner with full possession of the title is

Seizen

A seller mentions to his agent that the previous owners of his property may have dumped hazardous waste on the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), who is liable for damages from the dumping prior to the sale of the property?

Seller

A buyer purchases a property "as is". The seller and the broker both knew that the house had bad wiring but did not tell the buyer. Which of the following statements is true?

Selling "as is" does not relieve the seller or the agent of the duty to disclose material defects

Real property can be converted to personal property by

Severance

Two lots of the same size are sold on a street. The lot on the corner sells for $20,000 more than the lot in the middle of the street. Which of the following characteristics MOST likely explains the price difference?

Situs

Which of the following is NOT usually prorated at closing

Special tax assessments

Administrator's deed, executor's deed, and sheriff's deed are all what type of deed?

Specialty Deed

A vendor wants to give you, the agent, a gift for services. What should you do?

Tell your broker

A purchase agreement is signed for the purchase of a $400,000 house. A deposit of $10,000 is given to the broker and put in his escrow account. A month later, the buyer and seller agree not to go through with the sale. Which of the following should the agent do?

The broker must return the deposit to the buyer.

Two investors own an apartment building as joint tenants. One man dies leaving his entire estate to his two children. Which of the following best describes what will happen as to ownership of the apartment building?

The children do not inherit the apartment building.

A husband and wife own their home as tenants in the entireties. The wife dies and names their two children to inherit her interest in the home. Which of the following statements is true?

The children have no ownership in the home

What signatures are required on a deed or conveyance?

The grantor only

A special assessment has been levied for a subdivision to improve the drainage system in the subdivision. Which homeowner can expect to pay the largest tax, if taxed as front footage?

The largest corner lots

A man owns a life estate dependent on his own life. He leases the property for 3 years and dies one year later. Which is true concerning the lease?

The lease is no longer valid

A man conveys his interest in a pharmaceutical company to his ailing sister's son with the condition that the income from the company be used for his sister's medical care. Which of the following is true?

The man is the trustee with his sister as the beneficiary

Two investors buy a building as joint tenants. One of the investors dies. Which of the following is true as to ownership of the building?

The remaining investor owns the building in severalty

Which of the following is NOT a valid reason for terminating an agency relationship

The seller decides he would rather sell the house himself

A buyer submits an offer to purchase accompanied by earnest money in the amount of $1000. The seller accepts, but later changes his mind. What happens to the earnest money?

The seller must return the $1000 plus a like amount (that is, $2000 total) to the buyer

Which of the following statements would be true of both joint tenancy and tenancy by the entirety?

They both have the right of survivorship

The term that means that the contract must be performed within the time limit specified

Time is of the essence

True or False A corporation is considered a legal entity.

True

True or False A corporation is managed by a board of directors.

True

True or False A lease is both a contract and a conveyance.

True

True or False A levee would be an example of a legal servitude.

True

True or False A loan in which the interest rate fluctuates according to some external index is an adjustable rate mortgage

True

True or False A pregnant woman would be protected under the familial status class

True

True or False A quitclaim deed is sometimes used to clear title defects.

True

True or False All or part of the gain on the sale of a personal residence is exempt from capital gains tax if another residence is bought and occupied within 24 months of the sale of the old residence.

True

True or False An Attorney's Opinion is based on the Abstract of Title.

True

True or False An encroachment constitutes actual notice.

True

True or False An owner may appeal to the Zoning Review Board for a variance which exempts the owner from a particular zoning ordinance.

True

True or False An owner may sell or lease his air rights to another person.

True

True or False Assessed value is a percentage of market value.

True

True or False Because of the right of survivor-ship, joint tenancy is sometimes called "a poor man's will".

True

True or False Business and commercial loans are not covered by the Truth in Lending Law.

True

True or False Commercial appraisals are usually written as a narrative report.

True

True or False FHA permits no pre-payment penalties or lock-in clauses on its insured loans

True

True or False Generally, the greater the supply, the lower the demand.

True

True or False Government backed loans are exempt from federal usury laws

True

True or False Handicap status does NOT include illegal drug users.

True

True or False If a seller defaults on a sales contract, the buyer could place a vendee's lien on the property to recover his deposit.

True

True or False In a Trust Deed, the lender is the beneficiary.

True

True or False In community property, any property acquired outside the marriage, such as an inheritance, is called separate property.

True

True or False In order to get a deficiency judgment there must be an appraisal before the sale

True

True or False Incurable depreciation is a loss in value because of things that would cost more to repair than the resulting increase in value.

True

True or False Information about a property that is hand delivered to an interested party would be considered as giving actual notice.

True

True or False It is okay to refuse a loan solely on the location of the property

True

True or False Land is never depreciated

True

True or False Land is permanent, immobile, complex and unique.

True

True or False Novation allows the substitution of one party to the contract with a new party, or the replacement of a new obligation for an old one

True

True or False Reproduction cost is usually much higher than replacement cost.

True

True or False Restrictive conditions place limitations on the use of a property and are used in determinable or qualified fee estates.

True

True or False Riparian rights only apply when more than one property adjoins the same body of water.

True

True or False The FHA's main objective is to assist in providing housing opportunities for low and moderate income families

True

True or False The Habendum Clause specifies the type of estate being transferred

True

True or False The Purchase Agreement is the basis for the closing statement.

True

True or False The Sales Comparison Approach is not normally used for properties not sold on the open market such as churches.

True

True or False The clause of reconveyance in a Trust Deed is analogous to the defeasance clause in a mortgage

True

True or False The lender usually uses a ratio of 2 1/2 to 1 in verifying the ability to repay the loan.

True

True or False The main difference between FHA loans and conventional loans is that FHA loans have more liberal income qualifying standards.

True

True or False The method by which improvements or personal property become real property is through attachment.

True

True or False The right of disposition gives an owner the right to sell, will, lease, or give away his property rights

True

True or False The state's authority to enact and enforce police powers is passed on to the municipalities through enabling acts.

True

True or False Transferability refers to the ability to transfer the title from the seller to the buyer.

True

True or False You can not use the Cost Approach to appraise land.

True

True or False Zoning ordinances are used to enforce the Master Plan for a city's development.

True

A type of contract that is both a financing instrument and a sales contract is a

Trust Deed

When is racial discrimination in the rental of rooms or apartments permitted?

Under no circumstances

How does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay?

Writ of execution

Do mineral rights transfer when the property is sold?

Yes, unless specifically retained in the contract.

Is a person who is recovered from mental illness protected by the handicap status?

Yes.

A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest

a competitive market analysis to determine the property's value.

A major reason for buying and owning a condominium rather than a detached single-family home is that

a condominium tends to be more affordable

A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called

a contract

An agent representing both the buyer and seller in a transaction with the written consent

a disclosed dual agent.

A lawsuit for inverse condemnation may be brought by

a homeowner

Tenancy by the entirety is ownership by

a husband and wife

Dissolving a joint tenancy is done through a legal action known as:

a partition suit

The loan to value ratio is calculated as

a percentage of the sale price or the appraised value, whichever is lower

A stockholder's use of a unit in a co-operative is secured by:

a proprietary lease

The symbol T3NR2E would be used in

a rectangular survey description

State laws differ on whether a buyer is entitled to know about

a suicide that occurred in the house last year.

A brief summary of all recorded instruments which have affected the title to a property is called a/an

abstract of title

A summary report of what was found in the public records when the title search is done, beginning with the original owner and giving a chronological list of all recorded instruments including liens and encumbrances is a

abstract of title

A clause in a loan which calls for immediate payment of the entire balance if the borrower gets behind on his loan payments is a

acceleration clause

A clause in a promissory note that gives the lender the right to demand payment in full of the entire unpaid debt if the borrower defaults is called a/an

acceleration clause

Acquiring property through natural or artificial causes, or acts of God is a type of involuntary transfer which is called

accession

A statement saying that a person signing the document has done so of his own free will and that he is the person whose signature appears on the document is a/an

acknowledgment

When there is an intent to deceive such as lying or intentionally withholding pertinent information, this is known as

actual fraud.

First hand information regarding a property is known as

actual notice

A person who is appointed by the court to carry out the terms of a will is a/an:

administrator

A person occupies a property which he does not own for the prescribed number of years as set by state law with no objection from any other party. He can claim ownership of the property through

adverse possession

The acquisition of title to property by possession of the property for a statutory number of years is called

adverse possession

An agency relationship in which the agent is given an interest in the subject of the agency, such as the property being sold is called

agency coupled with an interest

The amount of commission to be paid is

agreed upon by the seller and agent on the contract.

A clause which makes the mortgage non-assumable (assumable means that a buyer can assume or take over the seller's mortgage) is a/an:

alienation clause

When a sewer line is installed down a rural road, the cost will probably be shared by

all current owners of real estate fronting on that road

A deed restriction is applicable to the activities of

all owners, present and future

A managing broker can be held responsible for

all real estate activities of salespersons.

One common method for controlling the problems created by conflict of interest in dual representation is

allowing a broker to designate separate salespeople within the company as legal representatives of each of the clients.

The gradual increase in the size of a property as the result of some natural process is called accretion. The land deposited by this process is called

alluvion

A loan which has a fixed monthly payment consisting of interest and principle in which the principle portion increases each month and the interest portion decreases each month is a

amortized loan

In which type of loan would you generally pay the least amount of total interest, assuming the same interest rate?

amortized loan, ten year term

A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is

an agent to the broker and a subagent to the principal.

An agreement to purchase that has NOT yet closed is

an executory contract

A broker says, while showing a rural property, "This property has the world's purest well water." This would be an example of

an expression of opinion, or puffing, which could lead to misrepresentation

The FHA functions MOST like

an insurance company

Ownership of common stock in a corporation gives

an interest that is classified as personal property

A contract in which the owner gives a purchaser the right to purchase within a specified time period is called

an option

A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called

an option contract

A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31. This is called

an option contract

A tenant was renting a property for use as a beauty shop. When she moved out of the property she failed to remove the chairs that she used for her business. The chairs, although trade fixtures, are now the property of the owner. Under what principle does the landowner acquire the trade

annexation

The Income Approach is based on the principle of

anticipation

The principle of value that is the basis for the Income Approach to value is

anticipation

Title insurance generally covers defects that

are in the public records

When two or more lots are combined to form one larger parcel, this is called:

assemblage

An easement appurtenant involves

at least two tracts of land

An agent for a seller must disclose his agency relationship to the buyer when?

at the first substantive contact

The method by which personal property becomes real property is

attachment

A loan which is amortized over 30 years with a 5 year call is most likely a

balloon mortgage

A type of deed that guarantees more than the quitclaim but less than the special warranty deed is the

bargain and sale deed

A type of mortgage which covers several properties, but allows for separate release of the properties from the mortgage is a

blanket mortgage

Panic selling for financial gain by insinuating that a minority group is moving into a neighborhood is known as

blockbusting.

The practice of inducing panic selling in a neighborhood for financial gain is

blockbusting.

Usury laws were enacted to protect the

borrower

Mr. Baker and Mr. Adams are partners in a business which sells golf balls. Mr. Baker owns 60% of the business and Mr. Adams holds 40%. Who must sign in order to sell the business?

both

A listing contract may be terminated if

both parties agree

When one of the parties to an agreement fails to perform one of its conditions, that contract is deemed to be

breached

When the commission is shared between the listing broker and the selling broker, this is known as:

broker cooperation

Areas which separate areas of diverse zoning classifications are called

buffer zones

If all other factors are equal, in which location is a parking lot likely to bring the highest sales

business district zoned for a six-story office building

The profit realized from the sale or exchange of an asset is

capital gain

The four factors of production are:

capital, management, labor, and land

An investor's rate of return on his investment is called the:

capitalization rate

A continuous linking of owners stretching back to the first owner or the original land grant is called a/an

chain of title

The form in which a residential appraisal is usually done is called the:

checksheet

Another term for the owner of a property listed with your firm is the

client

An agent has a fiduciary relationship with the

client or principle

RESPA requires the lender to disclose

closing costs

A type of ownership in which the owner owns shares of stock rather than real property is called

co-operative

Ownership by two or more people is known as

co-ownership

An addition to an existing will is called a:

codicil

The property which is pledged in the loan instrument is called the

collateral

Ownership by a husband and wife in which the husband and wife each have separate, equal ownership in anything acquired by the marriage is called

community property

An estimate of value which is NOT a formal appraisal but uses the same principles and many of the same methods as the sales comparison approach is a

competitive market analysis or CMA

The government exercises its right of eminent domain through a court action known as

condemnation

A qualification in a fee simple estate which prevents the new owner from performing some action or activity is known as a

condition subsequent

A determinable fee estate is ownership with

conditions

A form of ownership involving several owners holding fee simple title to individual units in a property and common ownership in the property's common grounds is called

condominium

The principle of value that is the basis for subdivision restrictions is

conformity

In the other 49 states a contract must be accompanied by

consideration

A type of interim financing used for construction and is paid out in draws at regular intervals is a

construction loan

Filing documents in the public records at the court house is considered to be what type of notice?

constructive

A type of fraud that is committed with no intent to harm, mislead or misrepresent is:

constructive fraud

A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given

constructive notice

Recording a transfer of property in the public records at the court house is known as

constructive notice

Conditions that must be met before a sales contract is fully enforceable are called

contingencies

The value that one particular component of a structure contributes to the total value is

contribution

The two general categories of loans are

conventional and government backed

There are two general types of life estates. They are

conventional and legal

What type of real estate investment has no real property ownership?

cooperative

Every fourth township line serves as a

correction line

Depreciation is calculated based on the

cost of the building only

CCR stands for:

covenants, conditions, and restrictions

An assumption of the seller's loan would be listed on the settlement statement as

credit to buyer, debit to seller

An assumption would be listed how on the settlement statement?

credit to buyer, debit to seller

In the closing statement, new loan proceeds are listed as

credit to the buyer

The husband's interest in his wife's estate is called

curtesy

The agent owes only honesty and truthfulness to the

customer

The selling price of the property would be listed on the closing statement as

debit to buyer, credit to seller

The pay-off of seller's mortgage would be listed on the settlement statement as

debit to seller, nothing to buyer

The selling price of a property would be listed how on the closing statement?

debit to the buyer, credit to the seller.

A written instrument by which title to real property is formally transferred from one party to another is a

deed

The instrument which transfers the title back to the original owner once the trust deed is paid off is called a/an

deed of reconveyance

The clause which provides for removal of the mortgage when the debt is paid is the

defeasance clause

When the debt is paid, the mortgage is said to be

defeated

In a 1031 tax exchange, capital gains tax on the sold property is

deferred

In some states, if the lender is unable to recover his full interest in the foreclosed property, he may seek a __________ ___________, which allows the lender to attach and seize the borrower

deficiency judgment

The desire to purchase along with the ability is called

demand

A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to

demand immediate payment of the entire note

The four determinants of value are

demand, utility scarcity, transferability

The agent who is appointed by the broker to represent a particular client is known as the

designated agent

Which duty is easiest to perform as a dual agent?

disclosure

1. They are used to buy down interest rate. 2. They are a function of the marketplace. 3. They are paid by either the buyer or the seller.

discount points

When land is conveyed to a trustee, the trustee may

do whatever is permitted under the trust agreement

The person benefiting from an easement appurtenant is called the

dominant estate

A change in zoning from a high density use to a lower density use, for example, from residential to agricultural is known as

downzoning

The right to use a portion of the land of another for a specific purpose is a/an

easement

A type of easement always involving at least two tracts of land and involving ingress and egress is called a/an

easement appurtenant

A type of easement in which one land owner has access across his neighbor's land would be a/an:

easement appurtenant

An appurtenant easement that arises when an owner has no access to the street except across his neighbor's land is called:

easement by necessity

An easement granted for a utility, pipeline, railroad, or water line would most likely be a/an

easement in gross

The period of time over which a property is considered to be useful is the:

economic life.

A commercial property lost value because a recently constructed highway moved traffic away from the property. This is an example of

economic or external obsolescence

How old a property property "looks", that is, the age based on what condition the property is in is called:

effective age

Farm crops are called:

emblements

Which of the following would not transfer with the sale of a house at closing?

emblements

The state's authority to enact and enforce police powers is passed on the the municipalities through:

enabling acts

The unauthorized use or occupation of another's property is called a/an:

encroachment

A claim or burden on a property which limits one's use or rights in the property is called a/an:

encumbrance

The loan guarantee amount which the veteran is eligible to receive on a VA loan is referred to as the

entitlement

During the period of time after the borrower defaults and before the foreclosure sale, the borrower, or another lien holder, can redeem the property by paying the debt. This is called

equitable redemption

An additional time period in which the borrower can pay a debt and redeem his property is called

equitable right of redemption

What type of interest, if any, does a purchaser have in a property he has contracted to buy, but the sale has not yet been executed?

equitable title

The difference between the value of a property and the loan balance is the

equity

A clause which allows the lender to increase the interest rate during the term of the loan is called a/an

escalation clause

A clause which may be included giving the lender the right to increase the rate of interest during the length of the mortgage is a/an

escalation clause

When an owner dies without leaving a will and without heirs, his property reverts to the state. The term for this is:

escheat

A broker in listing a house, wanted an exclusive right to sell the property for 90 days. The seller wanted to retain the right to sell the property himself. What type of listing would be best?

exclusive agency

In what type of listing does the seller hire one broker but retains the right to sell the property himself without paying a commission to the broker?

exclusive agency listing

There are three basic types of buyer agency agreements. In which type is the agent guaranteed a commission regardless of who sells the property?

exclusive buyer agency

Procuring cause would not be required in order for a broker to receive a commission in a

exclusive right to sell listing

Which type of listing is the best one to ensure the broker a commission?

exclusive right to sell listing

A will usually names a person to carry out the instructions of the will. This person is called the

executor

The quickest process for foreclosure is

executory process

An agency relationship based on a formal agreement between the parties, either written or verbal, is

express agency

The type of depreciation which is NEVER curable is called

external

If your property is located next to a toxic waste dump, you might expect to have which of the following types of depreciation?

external depreciation

Things that are near a property and affect the value of the property are called

externalities

A housing complex with 80% of the units occupied by a person 55 or older would be exempt from renting to which protected class?

familial status

Which estate is ALWAYS inheritable?

fee simple

The most complete form of ownership which lasts forever and may be passed on to one's heirs is called:

fee simple or fee simple absolute

The relationship in which the agent is placed in the position of trust and confidence to the principal is known by the term

fiduciary

The practice which requires the lender to refund to the borrower any profit realized on the sale of the foreclosed property after satisfaction of the debt is

foreclosure by sale

Under which type of foreclosure is the lender required to refund to the borrower any profit realized on the sale of the foreclosed property?

foreclosure by sale

The intentional misrepresentation of a material fact is:

fraud

A type of ownership which extends for an indefinite length of time and includes some or all of the rights contained in the Bundle of Rights is called a

freehold estate

A type of depreciation that results from outdated design or technology is called

functional depreciation

In which type of partnership is each partner responsible for the debts up to the limits of his own private resources?

general partnership

What type of deed is the best one for the grantee?

general warranty deed

A loan in which payments start small and become larger over the term of the loan is a

graduated loan

The clause in a mortgage which pledges the collateral property to the mortgage is called the

granting clause

Which clause in a deed contains the actual words of conveyance?

granting clause

A deed must be signed by the

grantor

The party conveying title is known as the

grantor

A handicapped tenant may make reversible changes to a structure if

he does so at his own expense

The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that

he is no longer the listing agent

A property owner owns land near a waterway with no access to the water. He obtains permission from the state to use the waterway under the doctrine of prior appropriation. How does he obtain access to the waterway?

he must negotiate an easement with the owner of the waterfront property.

The theory that there is one particular use for each property that will bring the highest value, is called

highest and best use

A will that is written by the testator and in his own handwriting, dated and signed by him is known as a

holographic will

The relationship of the borrower's total monthly housing expense to income, expressed as a percentage is:

housing expense ratio

The gross adjustment is an indication of:

how good a comparable is.

Under the Lien Theory, title is said to ___________________ to the lender

hypothecate

Pledging a property as security for a debt while retaining title is called

hypothecation

Which group is not protected by fair housing laws?

illegal drug users

Ordering a meal in a restaurant and being expected to pay for it would be an example of what type of contract?

implied

An agency relationship based on the actions of the parties is

implied agency

The real estate contract for a specific property for use as an unlicensed whiskey sales operation was forced to terminate. The termination was the result of

impossibility of performance

Anything man-made that is added to the land such as homes, buildings, fences or sidewalks is known as

improvements

Earnest money should be deposited into a trust account

in a timely manner, according to state laws

Ownership of real estate by a corporation would be

in severalty

If the cost of repairs is greater than the resulting increase in value, then we say the depreciation is

incurable

The function of the FHA loan program is to

insure loans against the borrower

A person who dies leaving a will is said to have died testate. A person dying without a will is said to have died

intestate

An unpaid swimming pool lien placed by the installer would be an example of

involuntary specific lien

A type of co-ownership in which all owners must acquire their interest at the same time, hold an equal share, and has the right of survivorship is called

joint tenancy

Possession, interest, time and title (or PITT) are associated with what type of ownership?

joint tenancy

Tenancy by the entirety is most similar to

joint tenancy

To protect himself from Fair Housing suits, an agent should

keep accurate records of what property he shows to whom.

The concept that one may lose his legal rights if he inexcusably fails to exercise them within a reasonable time is known as

laches

A hidden structural defect that would not be discovered by ordinary inspection

latent defect

A person who inherits property in a will is known as a:

legatee

FHA insurance protects the

lender

Mortgagee title policies protect against _________ loss?

lenders

An agreement granting the short term use of a property and which is revocable at any time is called a/an

license

A monetary claim upon the property of another, which uses the property itself as security for payment of a debt is a

lien

Under the Lien Theory, the borrower holds legal title to the pledged property and the lender holds a

lien against the property.

A type of freehold estate which exists until the death of a certain specified person is

life estate

An amount of money, agreed to in writing by buyer and seller, that will serve as full compensation if one party does not live up to a sales contract is called

liquidated damages

Another term for earnest money is

liquidated damages

A recorded notice of impending litigation against a property is called

lis pendens

An example of a service contract is

listing agreement

Discount points are calculated on the

loan amount

The term used to describe the relationship between the amount of the downpayment and the amount of the loan is called the

loan to value ratio

A description that reads "Lot 5, Block B, Wildwood Heights" would be which type of description?

lot, block and tract

An agency relationship between a property owner and a property manager is usually created by

management agreement

The most probable price in terms of money which a property should bring in a competitive and open market is:

market value

Another term for "offer and acceptance" is:

meeting of the minds.

A violation of the Fair Housing Law is

misdemeanor

Errors regarding the facts of a contract are called

mistake of fact.

When obtaining a conventional loan, the borrower must give the lender a

mortgage and promissory note

The person who lends the money is the

mortgagee

An insurance policy which protects the lender for the amount of the loan as to problems with the title to the property is called a

mortgagee's policy

The borrower, or person making the loan is the

mortgagor

When a property owner uses his home as collateral for a loan and creates a lien in favor of the lender, title is held by the

mortgagor

Too much leverage may result in

negative cash flow

When an agent should have known that a statement about a material fact was false, this is called:

negligent misrepresentation

The annual gross income minus all operating expenses for the year is the

net annual income

A listing which is illegal in some states, and allows the broker to keep all proceeds of the sale in excess of a net amount is called

net listing.

If a property is downzoned and there is an decrease in value because of the downzoning, is the owner eligible for compensation from the city?

no

A building which was built before a zoning ordinance was enacted, but is allowed to continue until the building is torn down or its use is change, is called a

non-conforming use

Meridians and range lines both run parallel to each other and

north-south

The substitution of one party to the contract for another party, or the replacement of a new obligation for an old one is called

novation

A section is

one square mile and 640 acres

In which type of listing contract does the seller retain the right to employ as many brokers as he wants to try to sell his property, but is only obligated to pay a commission to the one who actually finds a buyer?

open listing

Which of the following is an example of a unilateral contract?

option

A partially amortized loan with a balloon payment would have a ____________________ monthly payment than a fully amortized loan

ower

A purchase money mortgage is used in

owner financing

A mortgage which is secured by both real and personal property is a

package mortgage

If one of the owners in a joint tenancy or tenancy in common wishes to force the sale of the property, he does so through:

partition suit

A protection clauses in a listing allows for

payment of the commission if the buyer was secured by the broker even if the sale takes place after the expiration of the contract

The four physical characteristics of land are

permanence, immobility, complexity, and uniqueness

A free-standing china cabinet built to fit into a corner of a dining room would be considered

personal property

A Bill of Sale is used for:

personal property.

A type of depreciation that results from normal wear and tear and is always

physical depreciation

Parcels A, B, and C are located side by side and owned by three different owners. A is worth $20,000, B is worth $27,000, and C is worth $16,000 for a total of $63,000. A developer believes that if all three can be purchased, the larger parcel would be worth $85,000. By assembling these under one owner they would be worth $22,000 more than their individual values. This demonstrates which principle of value?

plottage

If two lots are combined resulting in an increase in the value of the lots, this is called:

plottage increment

The power of the government to enact and enforce laws to protect the health, safety, morals and welfare of the general public is called

police powers

If a property is in a good location we say it has

positive situs

The clause in a trust deed that allows the trustee to sell the property and repay the beneficiary in case of default is called the

power of sale clause

A clause in a promissory note which provides for a penalty if the debt is paid off early is called a/an

prepayment clause

A fee charged for paying off a loan before the end of the prescribed term is called a

prepayment penalty

An easement can be terminated by

prescription

A buyer makes an offer on a house. Before the listing agent has had a chance to present the offer to the seller, a better offer comes in. What should the agent do with the first offer

present it along with the second offer

The letters PITI stand for

principal, interest, taxes, and insurance

The person who is represented by the licensee is the

principle

Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. In many states, the common law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with property. In others, all water rights are controlled by the state under the doctrine of

prior appropriation

Any conventional loan that is greater than 80% is required to have

private mortgage insurance

When a testator dies his will must go through a court proceeding called

probate

Once a seller accepts a ready, willing, and able buyer, the agent is entitled to a commission because of the principle of

procuring cause

An Environmental Impact Statement (EIS

projects the impact on the environment of a proposed project.

A covenant is the same as a

promise

The document which contains the promise to repay along with specific conditions and stipulations is a

promissory note

Which of the following events would AUTOMATICALLY cancel a listing agreement?

property owners death

The purpose of requiring an earnest money deposit in a real estate sales contract is to

provide evidence of the buyer's intention to carry out the contract.

In MOST states, foreclosed property is sold through

public auction

A developer may transfer ownership of the streets and parks in a subdivision through a

public dedication

When the government gives land to a private party it is called a public grant. When a private party gives land to the government it is known as a

public dedication

An environmental impact statement typically describes the effects of a proposed project on factors such as

public health and safety

The document used in a real estate sale that establishes the legal rights of the buyer and seller is the

purchase contract

Which of the following methods of estimating cost is the most accurate and the most time consuming?

quantity survey method

What type of deed provides the LEAST protection for the grantee?

quitclaim deed

The Civil Rights Act of 1866 prohibits any type of discrimination based on

race

What are the 7 protected classes?

race, color, religion, national origin, sex, familial status, handicapped

Townships are created by

range lines and township lines

The process by which the value is derived when using two different approaches to value is called

reconciliation

When an appraiser uses more than one of the approaches to value on a single property, the process by which he combines the results from each is called:

reconciliation

The process through which a mortgagor can regain his property after default is called

redemption

Refusing to make loans or issue insurance policies in certain areas is known as

redlining

The gradual exposure of land behind a receding waterline is called

reliction

The person who will own the property after the death of a life estate owner is called

remainderman

The method of arriving at a value by estimating the cost to build a similar structure at today's prices is:

replacement cost

When appraising an older house for which there are no comparables to be found, what method would you most likely use?

replacement cost

The method of arriving at a value by calculating the cost to build an exact replica of the building is called

reproduction cost

The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA,

require the buyer to acknowledge disclosure of the presence of any known lead paint

Under certain conditions, one party may cancel or terminate a contract. This is known as

rescision

The five categories of real property are

residential, agricultural, industrial, commercial, and special purpose

There are two types of deed restrictions. They are restrictive covenants and

restrictive conditions

Subdivision restrictions are also known as:

restrictive covenants

A type of mortgage designed for retirees in which regular monthly payments are made to the borrower based on the equity, and in which the loan is paid from the sale of the property at the owner's death is a

reverse mortgage

A clause in a deed that provides for the property to revert to the original owner if conditions of ownership are not met is called a:

reverter clause

An arrangement in which the property is sold and leased to the seller, usually to raise capital for a business, is a

sale and leaseback

The action which cancels the note when the full debt is paid and defeats any interest the mortgagee has had in the collateral property is called

satisfaction of judgment

The economic characteristics of land are

scarcity, location, and durability

The four economic characteristics of land are

scarcity, modification, fixity of investment, and situs

A mortgage that is subordinate to another mortgage is called a

second mortgage

The distance from streets or sidewalks that buildings can be erected is known as:

setback

RESPA requires disclosure of

settlement costs

The single most important thing in determining the value of a property is

situs

A business which is held by one person and is not incorporated is a

sole proprietorship

The type of agency that exists between the real estate agent and his client is usually

special agency

When a principal authorizes an agent to perform a particular act or transaction, it is an example of a

special agency

A property tax that is imposed only on a specific segment of the community to pay for improvements for that segment is called a

special assessment

Two types of property taxes are ad valorem taxes and:

special assessments

A Bargain and Sale Deed with Covenant is equivalent to a

special warranty deed

In which type of deed does the grantor guarantee the title only during the time that he actually owned the property?

special warranty deed

A lien which attaches only to the property explicitly stated in the lien is a

specific lien

A sales contract in which either party can sue to have the sale completed should the other party default on the contract is called

specific performance contract

When someone has living heirs but dies without leaving a will, the estate is distributed according to the

statue of descent

In some states there is an additional period of redemption after the foreclosure sale. This is called

statutory redemption

A will which is prepared by an attorney, witnessed and signed is known as a

statutory will

What type of payment plan allows for regular payments of interest only, with the principle paid as a lump sum at the end of the term?

straight or term

A loan which calls for payments of interest only for the term of the loan with the entire principle due at the end of the term is a

straight term loan

All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT

straight-line method

Which is the LEAST acceptable form of property description?

street address

An agreement that changes the priority of liens is a/an

subordination agreement

What changes the priority of liens?

subordination agreement

A clause which is found in certain types of mortgages that gives permission for another, subsequent lender to assume the rights of a first mortgage lien is called a

subordination clause

The right of a title company to receive any damages available to the insured when the title company has made a payment to settle a claim covered by a policy is called

subrogation

When a title company has made a payment to settle a claim covered by a policy, the title company then has a right to any remedy or damages available to the insured. This is called

subrogation

When one party has substantially performed the terms of the contract, but has not completed every detail exactly as the contract states, this is known as

substantial performance

A contract is signed for the purchase of a house, but before the sale is closed the seller dies. The heirs do not wish to sell. The buyer can

sue for specific performance

The buyer wants to make the purchase offer contingent on a complex mortgage arrangement. The buyer's agent Who is drawing up the contract should

suggest the buyer ask a lawyer to furnish the wording

The additional value between two similar income properties that is due to the land or the location is called

surplus productivity

The principle which states that the difference in value between two similar properties is attributed to the location of the land is

surplus productivity

At the time of listing, the seller tells the listing agent they are moving because the neighbor has loud parties every weekend. The agent should

tell potential buyers about the parties

A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should

tell the seller to disclose the termite treatment on the property disclosure

The simplest form of co-ownership in which each owner holds title to a specific share of the property but it is said to be "undivided" is called:

tenancy in common

Timeshare ownership programs MOST often use which of the following ownership forms?

tenancy in common

A man is a co-owner with three others of a warehouse. The man dies and his interest in the warehouse is inherited by his heirs. The man's interest in the warehouse was as a:

tenant in common

Three owners own a property as joint tenants. One of the owners sells his interest to a fourth party. The fourth party is a

tenant in common

Two investors can own an investment property in unequal shares as

tenants in common

A loan which requires the borrower to pay interest only until the maturity date (or due date), and then pay the entire principal on the maturity date, is called a

term loan

The rights associated with ownership of real property are called

the "Bundle of Rights"

FHA loans are insured through:

the Department of Housing and Urban Development (HUD).

If an agent is working as an independent contractor for the broker:

the agent is responsible for paying his own Social Security and income taxes

A buyer becomes obligated when

the agent presents him with the accepted contract

While an agent is showing a listed property, the seller and the buyer enter into an oral agreement for the purchase of the home. If a dispute over the terms arises later, the agreement may be unenforceable because

the agreement does not comply with the Statute of Frauds

When depreciating a property you would normally depreciate

the building only

A salesperson working with a co-operating broker has a fiduciary relationship to all EXCEPT:

the buyer

A contract is signed between buyer and seller. The contract would become impossible to perform if

the house burns down

Under the Title Theory, who is the legal owner of the mortgaged property?

the lender

If there is a conflict between zoning ordinances and restrictive covenants, which one takes precedence?

the most restrictive one

The real estate broker who is listing a house for sale should personally verify

the number of square feet in the building

A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if

the owner withdraws the counteroffer before it is accepted.

In Louisiana, the law states that, unless there is a written agreement to the contrary, the agent represents

the person he is with

Which of the following is an agent required to disclose to a potential buyer?

the property contains asbestos insulation

In every real estate transaction, a legal description of the real estate MUST appear in the transaction documents. What kind of legal description should be used in MOST transactions?

the same one used in prior transfers of the parcel, verified by a surveyor

A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when

the seller accepts the offer

Given a description: "the SW ¼ of the NE ¼ of the SE ¼ of Section 16". Which quarter of Section 16 is this land in?

the southeast

PMI, or Private Mortgage Insurance covers

the top portion of the loan proceeds over and above the standard 80%.

Ownership along non-navigable riparian waterways is

to the midpoint

Ownership along navigable riparian waterways is

to the water's edge

In a Trust Deed, the borrower is known as the

trustor

An example of price fixing would be

two brokers agreeing to set the same fee structure.

The process of determining the risk a lender is incurring by lending a sum of money to a certain borrower is called

underwriting

Representing two principals to a transaction without the knowledge and consent of both is

undisclosed dual agency

A contract in which only one party is obligated is called a

unilateral contract.

Errors and Omissions insurance covers the broker for

unintentional misrepresentations

Who may be exempt from the Fair Housing Act of 1968?

unlicensed owners

if a promissory note is not secured by a mortgage, it is called a/an

unsecured note

When does a listing contract terminate?

upon expiration of the contract date.

The main difference between mortgage brokers and mortgage bankers is that mortgage bankers:

use their own funds and service the loan.

Charging an interest rate that is higher than the maximum allowed by law is

usury

What's The practice of charging more interest than is legally allowable?

usury

The process of determining the worth of something is called:

valuation

Capitalization is the process by which annual net income is used to determine

value

A type of seller financing used in connection with a Purchase Money Mortgage is a:

vendor's lien

Which clause in the deed identifies the grantor and the grantee, often including their addresses?

vesting clause

A contract for the sale of a property which does not state the consideration to be paid and is not signed by the parties would be

void

If a contract is not legal and is not binding on either party it is said to be

void

If a property is sold for an illegal purpose, that contract is

void

A contract signed under duress is

voidable

A contract that is signed by a 16 year old is

voidable

The clause in a mortgage that states that the mortgagor has good and clear title to the property and has the right to convey it is the

warranty of title clause

Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. Either riparian and littoral rights are automatically conveyed with property, or all water rights are controlled by the state under the doctrine or prior appropriation. The doctrine of prior appropriation is MOST likely to be followed in states where

water is scarce

A mortgage which is subordinate to other mortgages, but includes in its payment the payments for the other mortgage(s) is a

wrap-around mortgage

A mortgage which is used for owner financing and combines an assumption and owner financing is a

wrap-around mortgage

An express contract must be

written or spoken

Is a person with a mental illness who is completely cured covered by the Civil Rights Act of 1968?

yes, because the law covers anyone who is currently mentally ill or recovered.

If you own a building free and clear that is worth $115,000 and want an annual return of 12%, what net income is needed each month?

$1,150

The penalty for non-compliance of Regulation Z is

$10,000 per day

What is the penalty for a first offense fair housing violation?

$11,000

A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for taxes? Round to the nearest cent

$225.00

An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than

$250,000

The sellers have agreed to give the buyers an allowance of $16.95 per square yard to retile the kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the nearest dollar)?

$264

What is the penalty for a second fair housing offense within the past 5 years?

$27,500

A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.)

$409.20.

. On January 15, a seller paid $960 in annual property tax for the current calendar year. A buyer is purchasing the house with the closing set for March 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month.

$800

The sellers have agreed to give the buyer a carpet allowance to replace the family room carpet. They will allow $19.95 per square yard for carpet plus $5 per square yard for pad and installation. If the family room is 22'6"x 15', how much will it cost the sellers (to the nearest cent)?

$935.63

Which of the following is usually prorated at closing?

1. Homeowners association fees. 2. Property taxes. 3. Transferred homeowner's insurance.

Which of the following is NOT required to have a real estate license?

1. anyone selling his own property 2. attorneys selling property as part of their professional duties for a client. 3. appraisers, trustees, and escrow clerks

Antitrust laws prohibit competing brokers from all of the following

1. boycotting other brokers in the marketplace. 2. dividing the market to restrict competition. 3. agreeing to set sales commissions and management rates.

According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad

1. cash price or amount of the loan 2. amount of down payment required 3. number, amount, and frequency of payments

A type of owner financing in which the seller retains the title to the property until the final payment is made is called

1. installment sale. 2. contract for deed. 3. In Louisiana, bond for deed.

Real property consists of

1. land 2. improvements 3. plants, trees and crops

Regulation Z requires that the borrower be fully informed of all of the following

1. loan fees. 2 .the origination fee. 3. the annual percentage rate

An adjustable rate loan should include all of the following elements

1. margin 2. life-of-the-loan cap 3. index

What is grounds for termination of an agency relationship

1. mutual agreement 2. destruction or condemnation of the property 3. death or incapacity of either party

The Statute of Frauds states that

1. real estate contracts must be in writing if they are to be enforceable by the courts. 2. real estate contracts must include the date, description of property, terms of payment and signature of the party incurring the debt of obligation

When preparing a market data estimate of value, which of the following categories of adjustment is essential?

1. the date of sale of the comparables 2. the amount of square footage 3. the location of the property

A property owner may exchange one property for another and have the capital gain tax deferred. This is called a

1031 tax-deferred exchange

If HUD issues a charge following an investigation of a discrimination complaint, either the complaint or the respondent would have how many days to choose the option to have HUD, through its ALJ, hear the case or have a jury trial?

20

The Trust Deed differs from a mortgage in that it involves____________ parties

3

The period for redemption of property sold for taxes in Louisiana is a minimum of

3 years

How many sections are in a township?

36

A township has a theoretical area of

36 square miles

How many square feet are there in an acre?

43,560

The distance between township lines is

6 miles

A mechanic's lien must be filed within how many days after completion of the work?

60

How many acres are there in a section?

640

A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor?

A license

A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?

Agency coupled with an interest

What prohibits price fixing, agreement between brokers to divide their markets, and Board of Realtors selling commission rates?

Anti trust laws

The trust deed conveys what type of title to the third party?

Bare or naked title

Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?

Both contracts are valid

Which of the following is NOT a consideration in the definition of market value?

Buyer and seller must agree to appraised value

Why was the Jones vs. Mayer decision of 1968 important?

By upholding the Civil Rights Act of 1866, the Supreme Court removed all exceptions to racial discrimination in housing