RE Salesperson Exam 2

M, a real estate broker, was renting P's apartments as P's property manager. M showed the remaining vacant apartment to S, an African American woman. M checked S's job, credit, and housing references and was about to inform S that she would be able to sign a lease when P called and inquired about S's color. M should 1. tell P because M has a fiduciary responsibility of loyalty to P. 2. tell P only on the condition that P keeps the information in confidence. 3. not tell P because it is not a material fact. 4. not tell P because S is a member of a protected class.

4) A licensee may not disclose that a pro spective tenant is a member of a protected class. (131-132)

All of the following would be considered a lien except a(n) 1. Encroachment 2. Judgement 3. mechanic's lien 4. Mortgage.

(1) An encroachment is an encumbrance. (23)

All of the following represent environmental hazards that may affect the marketability of a residential property EXCEPT 1. xenon 2. radon gas 3. lead-based paint 4. underground storage tanks

(1) Xenon is an inert gas and trace element in air. (42-45)

An appraiser is trying to determine the value of an income property by capitalizing the income stream. Which fo the following factors will the appraiser use? 1. Mortgage Interest 2. Net income 3. Replacement Cost 4. Income Taxes

(2) The net income in an operating statement does not reflect interest and taxes. (58-59)

Using the mortgage factor of $7.69, what is the monthly payment for $170,000 at 8.5 percent for 30 years A. $1,247.80 B. $1,276.70 C. $1,307.30 D. $1,337.90

(3) $170,000 = 1,000 = 170 x 7.69 = $1,307.30 (152-153)

A drunken man signed an offer to purchase the contract that he signed is 1. Valid 2. Void 3. voidable 4. enforceable

(3) A voidable contract may be disaffirmed because one of the parties signed when under duress. (106)

Which of the following would NOT be considered to be real property? 1. Trees 2. Buildings 3. Trade fixtures 4. Water rights

(3) Trade fixtures are items installed by a ten ant for conducting a business. (21)

An enforceable contract may contain any of the following as consideration EXCEPT 1. Money 2. Love 3. Affection 4. Duress

(4) A valid contract must be based on good and valuable consideration. If duress is involved, however, there would not be a meeting of the minds; the contract would thus not be valid. (105)

Charging a rate of interest in excess of the maximum rate allowed by law is 1. novation 2. Subordination 3. laches 4. usury

(4) Charging a rate of interest in excess of the maximum rate allowed by law is known as usury. Novation refers to an agreement in which a new debtor is accepted in place of an old one. Laches is a court doctrine used to bar a legal claim because of undue delay in asserting the claim. Subordina tion refers to an agreement that changes the order of priority of liens between two creditors. (77)

All of the following would be public land controls EXCEPT 1. zoning 2. environmental protection laws. 3. subdivision regulation 4. deed restrictions

(4) Zoning, environmental protection laws, and subdivision regulations are public land-use controls. (39-40)

7. A sale is to be closed on June 23. Real estate taxes of $3,760 for the current year have not been paid. What is the amount of real estate tax proration to be credited to the buyer? (Use a 30-day month for calculation.) 1. $1,566.65 2. $1,806.86 3. $1,879.98 4. None of the above

2) $3,760 - 12 months = $313.33 per month $313.33/30 days =$10.444 per day $313.33 * 5 months = $1566,65 $10.444 * 23 = $240.21 $1,566.65 +$240.21 = $1,806.86

Which of the following real estate loans is guaranteed against loss by the government? 1. Conventional 2. Veterans Administration (VA) 3. Federal Housing Authority (FHA) 4. Seller carries back in excess of $100,000

2) The Department of Veterans Affairs (DVA) loan provides a guarantee to the lender. There is no insurance premium for a guaranteed loan. However, an FHA loan is insured by the federal government, and an insurance premium is charged.

A home is valued at $103,000. property in this city is assessed at 80% of it's value and the local tax rate is $3.60 per $100. What is the amount of the owner's monthly taxes? 1. $247.20 2. $824 3. $2966.40 4. None of the above

(1) $103,000 x 80% (0.80) = $82,400 assessed value Divide by 100 because the tax rate is stated per $100. $82,400 = 100 = $824.00

You bought a home one year ago for $115,900. Property in your neighborhood is said to be increasing in value at a rate of 8 percent annually. if this is true, what is the current value of your real estate? 1. $125,172 2. $134,444 3. $144,063 4. None of the above

(1) $115,900 x 8% (0.08) = $9,272 annual increase in value $115,900 + $9,272 = $125,172 current market value (143)

A and B, a married couple, sold their principal residence in 1999 and made a profit on the sale of $600,000. A and B had lived in that property since 1987. A and B will have to pay capital gains on tax on 1. $100,000 2. $250,000 3. $500,000 4. $600,000

(1) A and B would be entitled to an exclusion of $500,000. (123)

A summary of all the recorded instruments affecting the title to a property is called a(n): 1. Abstract of title 2. certificate of title 3. escrow. 4. title insurance policy

(1) A buyer's attorney examines the abstract for flaws and prepares a written opinion of the condition of ownership. (120)

The Relationship of trust and confidence that broker has with a principal is called a(n) 1. Fiduciary relationship 2. Hypothecation 3. escrow 4. Trustor relationship

(1) Hypothecation is the pledging of prop erty as security for a loan without losing possession of it. Escrow is a third-party agreement; the trustor is the borrower in a trust deed. (85)

You received a real estate loan from a bank in which the lender was privately insured against loss in the event of default and foreclosure. The loan would have been which of the following? 1. Conventional insured 2. Federal housing Authority (FHA) 3. Veterans Administration (VA) 4. Rural Development

(1) Privately insured loans are conventional loans. All non-FHA and non-DVA loans are conventional loans. (71)

Which of the following scenarios would NOT be considered discriminatory under federal fair housing laws? 1. A man owns and lives in his four-unit apartment building, and he refuses to rent to families with children. 2. A landlord charges higher security deposits to tenants with children 3. a landlord places all families in selected buildings in his apartment complex 4. A landlord refuses to rent to a pregnant women.

(1) Rentals of rooms in an owner-occupied one to four-family dwelling are exempt from federal fair housing laws.

The agency that serves as the nation's banker and fiscal manager is the: a) United States Treasury b) Federal Reserve System c) Federal National Mortgage Association (FNMA), or Fannie Mae d) Federal Home Loan Mortgage Corporation (FHLMC), or Freddie Mac

(1) The U.S. Treasury is responsible for supervising the daily fiscal operations of the federal government. FHLMC and FNMA are warehousing agencies in the secondary mortgage market. The Fed eral Reserve regulates the flow of money through member banks. (74)

The borrower under a note secured by a mortgage is the 1. Mortgagor 2. Trustee 3. Mortgagee 4. Vendee

(1) The borrower under a note secured by a mortgage is a mortgagor. The lender is a mortgagee. The trustee holds the real estate as a security for the loan under a trust deed. The vendee is the buyer in a real estate contract. (69)

All of the following agency relationships could be used to described a cooperating broker in a real estate transaction EXCEPT 1. A subagent 2. an exclusive buyer's broker 3. a selling broker 4. a non-exclusive buyer's broker.

(1) The listing broker would be the only agent of the seller, and none of the cooperating brokers could legally represent the seller, because the offering of subagency to outside brokers is against public policy.

The broker has listed an owner's home. This agreement will be terminated by all of the following EXCEPT 1. death of the listing salesperson 2. death of the owner 3. death of the broker 4. bankruptcy of the broker

(1) The listing salesperson is a subagent whose death will not affect the listing contract. (108)

Which of the following types of listing establishes a broker-compensation arrangement whereby the broker get to keep all proceeds in excess of a stated minimum sales price? (This is considered to be an unethical or illegal listing arrangement) 1. Net 2. Open 3. Exclusive agent 4. Exclusive-right-to-sell

(1) Under a net listing, the broker may retain as compensation all money received in excess of the "net" set by the seller; the compensation is not definitely specified. This type of listing is either prohibited or discouraged by licensing authorities in many states. (106-107)

Which person would NOT be protected under the familial status definition according to the federal fair housing law? 1. A 19-year-old girl living with her mother 2. A 17-year-old boy living with his father 3. A 14-year-old girl living with a person who is seeking legal custody of her 4. A 21-year old women who is pregnant

(1) Under certain circumstances the familial status category protects individuals who have not reached the age of 18

Using the mortgage factor of $7.69, what is the monthly payment for $170,000 at 8.5 percent for 30 years, what is the total interest paid over the life of the loan? 1. $279,208 2. $300,628 3. $311,644 4. None of the above

(2) $1,307.30 x 360 months = $470,628 Total principal and interest -170,000 Amount of loan $300,628 a guaranteed loan. However, an FHA loan is insured by the federal government, and an insurance premium is charged. (72)

An appraiser has estimated the replacement cost of an office building at $300,000. The building is 22 years old and has an estimated useful life of 60 years. What is the current total depreciation of the building? 1. $90,000 2. $110,00 3. $130,000 4. None of the above

(2) $300,000 = 60 = $5,000, annual depreciation charge $5,000 x 22 = $110,000, current total depreciation (57)

You receive a monthly salary of $1200 plus a 3 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you receive $6,300 in salary and commission. What is the value of the property that sold? 1. $170,000 2. $204,000 3. $252,000 4. None of the Above

(2) $6,300 - $1,200 = $5,100, commission on sales $5,100 - 2.5% (0.025) = $204,000, value of property sold (143-144) Total interest paid over life of the loan

A contract in which the intentions of the parties are show by their conduct is 1. an express contract 2. an implied contract 3. a bilateral contract 4. an executory contract

(2) A contract in which the parties show their intentions by conduct is an implied contract; intention is shown by words in an expressed contract. Promises are exchanged in a bilateral contract. Some thing remains to be performed in an executory contract. (105)

A mortgage in which the lender receives an equity position as well as interest on the mortgage in a(n) 1. adjustable-rate Mortgage 2. Participation Mortgage 3. Reverse annuity Mortgage 3. Wraparound Mortgage

(2) A participation mortgage provides the lender with a percentage of cash flow beyond the interest paid by the borrower. (74

You have sold your home and taken back a mortgage from the buyer for part of the balance due. The type of mortgage you hold is a 1. blanket mortgage 2. purchase money mortgage 3. Participation mortgage 4. Wraparound mortgage

(2) A purchase money mortgage involves seller financing in which the legal title passes to the buyer.

a contract in which one party promises to do something if the other party performs a specific act is a(n) 1. unenforeable contract 2. unilateral contract 3. void contract 4. bilateral contract

(2) An unenforceable contract appears to be valid but neither party may sue the other to force performance. A void contract lacks an essential element of a valid contract and thus has no legal effect. A bilateral contract is a contract in which both parties promise to do something. (106)

A swollen, rushing river sweeps away an outcropping of land with several trees on it. The terms that most accurately identifies this kind of property loss is 1. Erosion 2. Avulsion 3. Accretion 4. Disenfranchisment

(2) Avulsion is the sudden tearing away of land by action of nature while erosion is the gradual wearing away of land by natural forces of water and wind. (119)

which of the following types of depreciation contains elements that are incurable only? 1. Physical deterioration 2. Economic or external obsolescence 3. Functional obsolesence 4. Physical Depreciation

(2) Economic obsolescence occurs outside the property. (57)

A house located net to an airport would be an example of 1. Functional obsolescence. 2. economic or external obsolescence 3. physical deterioration 4. physical depreciation

(2) Economic or external obsolescence is a loss in value resulting from an environ mental factor outside of the property's boundaries, such as being located next to an airport. (57)

Which of the following types of depreciation is generally incurable? 1. Physical deterioration 2. Economic or external obsolescence 3. Functional obsolescence 4. Physical depreciation

(2) Functional obsolescence and physical deterioration and depreciation may be incurable. Economic obsolescence generally is incurable. (57)

Which of the following is an economic characteristic of land? 1. Immobility 2. Situs 3. Non homogeneity 4. indestructibility

(2) Immobility, nonhomogeneity, and indestructibility are physical characteristics of land.

In an exclusive-right-to-sell listing, how many agents are involved? 1. Two 2. One 3. As many as the owner/lister chooses 4. As many salespeople as the broker has in his or her office

(2) In an exclusive-right-to-sell listing, there is only one agent. Regardless of who pro cures a buyer, the exclusive-right-to-sell broker receives a commission. (106-107)

Which of the following licensees is MOST likely to act as a general agent for a client? 1. Broker 2. Property Manager 3. Cooperative broker 4. Listing salesperson

(2) Often a property manager has multiple duties to perform for the principal. The broker is considered a special agent because the broker's task is often singular (procure a buyer or find a property). (166)

You have purchased three lots and combined them into one large parcel to build an apartment build an apartment building. This is an example of 1. The principle of progression 2. assemblage 3. the principle of substitution 4. Plottage value.

(2) Plottage is the value increment resulting from assemblage. (56)

a lender that refuses to provide loans on properties located in a minority neighborhood regardless of the ethnicity of the applicant would be engaged in a discriminatory practice known as 1. Steering 2. redlining 3. blockbusting 4. hypothecating

(2) Redlining refers to discriminatory denial of loans to people in selected areas, regardless of their qualifications.

You sign an agreement to purchase a home. The Contract requires that the seller replace the damage living room carpet. The carper you have chosen costs $18.95 per square yard plus $5.50 per square yard for installation if the living room dimensions are as illustrated (west wall 12' north wall 11' connected to diagonally to the south wall of 14') how much will the seller have to pay for the job? 1. $315.82 2. $407.48 3. $490.81 4. none of the above

(2) See Figure 15.4. 11' x 12' = 132' = 132 square feet, area of rectangle 3' 1/2(3' x 12') = x2(36') = 18 square feet, area of triangle 132 + 18 = 150 square feet

Federal Fair housing laws prohibit housing discrimination against all fo the following groups of people EXCEPT 1. Women 2. college student 3. ethnic minorities 4. families with minor childern

(2) Sex, race, and familial status are protected classes under federal fair housing laws.

A grantor wishes to convey title to a grantee in a deed that creates the least protection for the grantee. The grantor should give the grantee a 1. bargain and sale deed. 2. quitclaim deed. 3. general warranty deed. 4. special warranty deed

(2) The general warranty and special war ranty deed contain express warranties. A bargain and sale deed has an implied warranty. A quitclaim deed contains no warranty.

The requirement that a lender us the Uniform settlement statement from (HUD-1) for certain government-related loans is a requirement of 1. IRS regulations 2. RESPA 3. Regulation Z 4. Federal Housing Administration (FHA) regulations

(2) The other choices do not deal with a closing form. (122)

Within the field of real estate finance, what does the secondary mortgage market refer to? a) placing of junior liens b) transferability of mortgages among mortgagees c) transferability of mortgages among mortgagors d) none of the above

(2) The secondary mortgage market deals only with the first mortgages of mort gagors (borrowers) transferred among mortgagees (lenders). (75)

First-time homebuyers may make penalty-free withdrawals from their tax-deferred IRAs up too 1. $5000 2. $10000 3. $20000 4. $50000

(2) The withdrawals must be used for down payments on their homes. (123)

You are showing a property described as being in the "nicest neighborhood in town" when, in fact, other neighborhoods are arguably as nice. A statement such as this is MOST likely to be categorized as 1. fraud. 2. puffing. 3. misrepresentation. 4. professional negligence.

(2) Your opinion would be an example of puffing. (88)

A, who works for broker C on a 50-50 basis, sold house listed by broker E for $193,950. The seller agreed to pay a 6 percent commission but stipulated in the listing that 60 percent was to go to the selling broker. How much commission (to the nearest dollar) will A make on this sale? 1. $2,327.40 2. $2,909.25 3. $3,491.10 4. $4,189.32

(3) $193,950 sales price x 6% (0.06) com mission = $11,637, broker commission $11,637 x 60% (0.60) = $6,982.20 x 0.05 = $3,491.10, selling salesperson's commission (143-144)

A sale closed on July 21. Real Estate taxes of $3,420 for the current year have not been paid. What is the settlement sheet entry for the proration of the real estate taxes 1. Credit seller, $1,985.50; Debit buyer, $1,988.50 2. Debit Seller, $1995; Credit buyer, $1995 3. Debit Seller, $1909.50; Credit buyer, 1909.50 4. Debit buyer, $00.00; credit Seller, $1710

(3) $3,420 = 12 months = $285 per month $285 = 30 days = $9.50 per day $285 x 6 months = $1,710 $9.50 x 21 days = $199.50 $1,710 + $199.50 = $1,909.50 The taxes for the year have not been paid. When they are paid, the buyer will be in possession and will have to pay the bill. The seller, therefore, must pay (be debited) for the portion of the year that she occupied the property. The buyer receives a credit for the same amount.

A women wants to know how much money she owes on her mortgage loan. She knows that the interest part of the last monthly payment was $647.91. If she was payment an interest rate of 9 percent, what was the outstanding balance of loan before the last payment was made? 1. $64,791.10 2.$77,749.20 3. $86,388 4. $97,186.50

(3) $647.91 x 12 = $7,774.92 $7,774.92 - 9% (0.09) = $86,388

Three investors decided to pool their savings and buy a motel for $330,000. If one invested $90,000 and the second contributed $50,000, what percentage of ownership was left for the third investor? 1. 14.1 2. 27.3 3. 57.6 4. None of the above

(3) $90,000 (first investor) + $50,000 (second investor) = $140,000 $330,000 - $140,000 = $190,000, third investor's contribution $190,000/$330,000 = .5757 or 57.6%

A 500-acre farm is divided into house lots. The streets require one-eighth of the whole farm, and there are 300 lots. How many square feet are in each lot? 1. 48,636 2. 55,584 3. 63,525 4. 72,600

(3) 43,560 sq. ft. per acre x 500 acres 21,780,000 X (0.125) = 2,772,500 sq. ft. for streets 21,780,000 - 2,722,500 = 19,057,500 sq. ft. for lots

A partial release clause generally is found in a 1. Construction mortgage 2. Package Mortgage 3. Blanket Mortgage 4. Wraparound mortgage

(3) A blanket mortgage covers more than one property or lot; it is typically used to finance the development of a subdivision.

You have been given oral permission to park in a friend's driveway while attending a football game. Their permission is a(n) 1. easement appurtenant 2. encroachment 3. license 4. littoral right

(3) A license provides permission to enter the land of another for a specific purpose. Littoral rights involve water rights. An encroachment is an illegal extension of the building beyond the land of its owner. An easement appurtenant requires two tracts of land. (24)

Which of the following would NOT be an example of economic or external obsolesce? 1. Changing land uses in a neighborhood. 2. The major employer in the city going out of business 3. A poor floor plan 4. a nearby landfill contaminating the ground waste

(3) A poor floor plan is considered functional obsolescence. Economic or external obso lescence is a loss in value due to factors outside the property.

You are working as a salesperson for a broker and have just sold a home. You will receive your share of the commission on the sale from 1. the cooperating broker 2. the seller 3. your broker 4. the buyer

(3) A salesperson can only receive compensation from the broker for whom she works. (87)

You tore out an old furnace and installed a new furnace with central air conditioning in your home. This newly installed personal property becomes a 1. Trade fixture 2. Chattel fixture 3. fixture 4. Physical Trade fixture

(3) A trade fixture is attached to real property for the purpose of carrying on a business. A chattel fixture is an item of personal property. (21)

A has given B permission to park in A's drive way during the month of July. B has 1. an easement appurtenant 2. a life estate 3. a license 4. an easement by prescription

(3) An easement appurtenant requires a dominant tenement while an easement by prescription requires use without the owner's approval. A life estate is limited to the lifetime of the owner of the life estate or the lifetime of another (pur autre vie). (23-24)

Which of the following factors would not be considered by an appraiser in conducting a neighborhood analysis? 1. Relation of the rest of the community 2. Rent levels 3. Racial characteristics of the residents 4. Zoning

(3) Appraisers are not allowed to discuss racial characteristics in an appraisal report. (59)

Which of the following categories represents the FIRST one to be protected by federal law against discrimination in housing? 1. Familial Statues 2. Sex 3. Race 4. Sexual Orientation

(3) Race became a protected class in 1968; sex in 1974. Sexual orientation is not a protected class under federal fair housing laws. (131)

Of the following liens, which generally would be given the highest priority? 1. A judgment issued last year 2. A mortgage recorded four years ago 3. A special assessment 4. A mechanic's lien for work begun two months ago

(3) Special assessments and real estate taxes take priority over all other liens, regard less of the date of recording.

Broker who violate the Sherman Antitrust Act may punished by a maximum prison term of 1. One year 2. Two years 3. three years 4. five years

(3) The Sherman Antitrust Act also provides for a maximum $100,000 fine.

You had an exclusive-right-to-sell listing with a seller and you showed the property to a prospective buyer during the listing term. The seller openly negotiated with this prospective buyer and asked him to wait until the listing had expired to buy the property so there would be a commission savings on the transaction. You found out that the property was sold to the prospective buyer within a month of the time the listing expired. Are you entitled to a commission? Why or why not? 1. No; because the entire transaction occurred after the listing expired. 2. No; because exclusive right-to sell listings allow the seller to sell the property themselves without owing a commission. 3. Yes; because you were the procuring cause of the sale. 4. Yes; because you are entitled to a commission if the property is sold by anyone within a year of the listing period.

(3) The broker's commission would be protected by the broker protection clause in the listing contract. (87)

You have just given an option to buy your restaurant to a friend. Which of the following statement is NOT correct? 1. Your friend is the optionee. 2. you are the option-or. 3. Your friend is obligated to buy your restaurant. 4. Your friend must pay a fee of some kind for the option right

(3) The optionee (prospective buyer) pays for the option right but assumes no obligation to make any other payments until she decides whether or not to exercise her option right.

A broker listed a home under the condition that the owner receive $210,000 from the sale, with the broker being able to sell the property for as much as possible and keep the difference as the commission. This unethical if not illegal agreement is an example of 1. an exclusive-agency listing 2. an exclusive-right-to-sell listing 3. a net listing 4. an option listing

(3) The other listings would include a com mission agreed on in advance in terms of a percentage dollar amount. (107)

A broker listed a home for sale under an exclusive-right-to-sell listing. A second broker cooperated with the listing broker and sold the home. The house was sole, and the commission was split between the listing broker and the selling broker. Which of the following is FALSE? 1. The selling broker is not an agent of the listing broker 2. The listing broker is an agency of the seller 3. the seller is a customer of the selling broker 4. a broker who is not the seller's agent cannot receive any part of the commission

(4) A broker need not be the seller's agent to receive part of the commission. In most markets cooperation and compensation are extended to other members of the multiple-listing system.

Who of the following is NOT considered an agent? 1. A broker who has listed na owner's home for sale 2. A property manager, managing property for others for a fee. 3. A salesperson employed by a broker 4. a non licensed personal assistant of an agent

(4) A nonlicensed personal assistant work ing for an agent would not be considered an agent. The personal assistant could act either as an employee or independent contractor for the licensed agent. (88)

An odorless, radioactive gas produced by the decay of other radioactive materials in rocks under the earth's surface is which of the following? 1. asbestos 2. UFFI 3. Lead 4. Radon

(4) Asbestos is a material used for many years as insulation on heating pipes and ducts. Prior to 1978, UFFI was used to insulate buildings; because of its toxic outgassing, it was removed from the market. Lead is a material used to impede water flow. (43)

A broker was offered a listing by homeowners who state that they would not sell to a minority. The broker should 1. accept the listing and allow the owners the right to choose the buyer 2. file a complaint with the local board of Realtors 3. accept the listing and make sure that minorities are shown the property 4. refuse to accept the listing based on this condition

(4) Federal fair housing laws provide that it is unlawful to discriminate on the basis of race when selling residential property The broker must refuse to accept the list ing based on this condition. (131)

What is the value of an apartment building that is expected to produce a net annual income of $20,000. if the owner estimates that she should receive a return of 8 percent on her investment? 1. $120,000 2. $160,000 3. $200,000 4. $250,000

(4) I-R=V $20,000 = .08 = $250,000, estimated value (58)

A portion of A's land s protected from judgement for unsecured debts. A's protection is based on 1. Riparian Rights 2. Dower rights 3. littoral rights 4. homestead rights

(4) Riparian and littoral rights are water rights, while dower rights are a legal life estate, (26)

When a listing agreement includes a broker protection clause, the clause 1. protects the broker against any lawsuits filed by the client. 2. allows the broker to buy the listed property if the broker is unable to sell it. 3. automatically extends the listing for six months if the broker is unable to see the property. 4. states that the owner will pay a commission to the listing broker if the property is sold to a buyer with whom the broker negotiated during the listing term within a specific time after the listing expires.

(4) The broker protection clause refers to the broker's commission. The broker protec tion clause does not exist in Connecticut. In addition, the automatic extension of listing agreements is against the law in most states. (109)

Which of the following is a requirement for a valid deed? 1. The grantee must sign the deed. 2. The consideration must be in dollars 3. it must contain a subordination clause. It must contain a granting clause

(4) The grantor must sign the deed. Consid eration can be monetary or nonmonetary. Subordination clauses are used in mort gages. (121-122)

The giver of an option is called the 1. vendor. 2. optionor. 3. vendee. 4. optionee.

2) The giver of an option is the optionor; the buyer is the optionee. The vendor is a seller of realty; the vendee is the pur chaser of realty. (108)

A women owns a tract of land that also is a servient tenement. The easement over, through, or under the tract is a(n) 1. Lien 2. encumbrance 3. license 4. encroachment

2) The tract of land over which an easement appurtenant runs is the servient tenement; an easement appurtenant is an encumbrance, as are the lien, license, and encroachment.

The form of listing that provides the most protection to the broker is the 1. Exclusive agency 2. exclusive-right-to-sell 3. net listing 4. open listing

2) Under an exclusive-right-to-sell list ing, the broker receives the commission regardless of who sells the property. (106)

You are chairperson of the Democratic party in your state, and you also own an eight-unit apartment building you currently rent out. You are taking a rental application from a prospective tenant when she informs you that she works for the Republican party of your state. You inform her that all the apartments have been rented even though you know they have not been rented. Which of the following statements correctly describes this unethical situation? 1. You have violated Regulation Z. 2. You have violated the federal fair housing law. 3. You have exercised your rights as an owner of private property to discriminate. 4. You have violated RESPA.

3) Political belief is not a protected class under the federal fair housing laws

which of the following clauses gives a lender the right to declare the entire debt due and payable if the mortgaged property is either assumed without approval or sold on contract without lender approval? 1. Acceleration clause 2. Equitable redemption 3. Defeasance clause 4. Alienation clause

4) An acceleration clause states that if the borrower defaults, the lender has the right to declare the entire debt due and payable. The defeasance clause requires the lender to execute a satisfaction of mortgage when the note is fully paid. Equitable redemption refers to the right of borrowers to redeem this interest in their property prior to a public foreclosure sale.

An easement would generally be utilized in which of the following? 1. Accession 2. Novation 3. Partiton 4. Right of way

52. (4) An easement gives the dominant tenant a right-of-way. (23)