national practice exam 2
A woman owned property that she conveyed to a man "so long as no real estate broker or salesperson ever sets foot on the property." If a broker or a salesperson visits the property, ownership will revert to the woman. Based on these two conveyances, which statement is TRUE? A. The man holds the property in fee simple determinable. B. The man holds the property in fee simple defeasible, subject to a condition subsequent. C. The man may not transfer ownership of the property without the woman's permission. D. The woman has retained a right of re-entry with regard to the property
A. The man holds the property in fee simple determinable.
When a man died, a deed was found in his desk drawer. Although the deed had never been recorded, it was signed, dated, and acknowledged. The deed gave the man's house to a local charity. The will, however, provided as follows: "I leave all of the real and personal property that I own to my beloved niece." In this situation, the house MOST likely will go to A. the charity, because acknowledgment creates a presumption of delivery. B. the charity, because the man's intent was clear from the deed. C. the niece, because the deed was never delivered to or accepted by the charity. D. the niece, because the deed had not been recorded
C. the niece, because the deed was never delivered to or accepted by the charity.
Which statement is FALSE regarding a capitalization rate? A. The rate increases when the risk increases. B. An increase in rate, while other elements remain the same, means a decrease in value. C. The net income is divided by the rate to estimate value. D. A decrease in rate, while other elements remain the same, results in a decrease in value.
D. A decrease in rate, while other elements remain the same, results in a decrease in value.
Which situation does NOT violate the federal Fair Housing Act? A. The refusal of a property manager to rent an apartment to a Muslim couple who are otherwise qualified B. The general policy of a loan company to avoid granting home improvement loans to individuals living in transitional neighborhoods C. The intentional neglect of a real estate professional to show an Asian family any property listings in neighborhoods other than those with a majority of Asian residents. D. A widow's insistence on renting her spare bedroom only to another widowed woman
D. A widow's insistence on renting her spare bedroom only to another widowed woman
The capitalization rate on a property reflects (among other things) which factor? A. Risk of the investment B. Replacement cost of the improvements C. Real estate taxes D. Debt service
A. Risk of the investment
To net the owner $90,000 after a 6% commission is paid, what would the list price would have to be? Round your answer to the nearest dollar. A. $95,400 B. $95,745 C. $95,906 D. $96,000
B. $95,745
In some states, by paying the debt after a foreclosure sale, the delinquent borrower has the right to regain the property under which of the following? A. Novation B. Redemption C. Reversion D. Recovery
B. Redemption
Which activity is NOT a violation of the Real Estate Settlement Procedures Act (RESPA)? A. Providing a Closing Disclosure to a borrower four days before the closing B. Accepting a kickback on a loan subject to RESPA requirements C. Requiring the buyer to use a particular title insurance company D. Accepting a fee or charging for services that were not performed
A. Providing a Closing Disclosure to a borrower four days before the closing
Which step is among those an appraiser would use in preparing a real property appraisal using the cost approach? A. Estimate the replacement cost of the improvements B. Deduct for the depreciation of the land and buildings C. Determine the original cost and adjust for depreciation D. Review the sales prices of comparable properties
A. Estimate the replacement cost of the improvements
A buyer makes an offer on a property and the seller accepts. Three weeks later, the buyer announces that "the deal's off" and refuses to go through with the sale. If the seller is entitled to keep the buyer's earnest money deposit, there MOST likely is what kind of clause in the sales contract? A. Liquidated damages clause B. Contingent damages clause C. Actual damages clause D. Revocation clause
A. Liquidated damages clause
A squatter moved into an abandoned home and lived there for some years. Ultimately, the squatter was granted title to the property by a court. Which element is NOT basic to acquiring title in this manner? A. Permission of the true owner B. Open and notorious use C. Occupancy for a period of time prescribed by state law D. Occupancy hostile to the best interests of the true owner
A. Permission of the true owner
A property owner conveys a life estate to a cousin. Under the terms of the owner's conveyance, the property will pass to the cousin's children on the cousin's death. Which interest in the property BEST describes that of the children during the cousin's lifetime? A. Remainder B. Reversion C. Life estate pur autre vie D. Redemption
A. Remainder
A real estate professional listed an agricultural property at an 8% commission rate. After the sale of the property and the settlement had taken place, the seller discovered that the real estate professional had been listing other properties at a 6% commission rate. Based on this information, which statement is TRUE? A. The real estate professional has done nothing wrong because a commission rate is always negotiable between the parties. B. If the real estate professional inflated the usual commission rate for the area, the real estate professional may be subject to discipline by the state real estate commission. C. The seller is entitled to rescind the transaction based on the principle of lack of reality of consent. D. The seller is entitled to a refund from the real estate professional of 2% of the commission.
A. The real estate professional has done nothing wrong because a commission rate is always negotiable between the parties.
A seller lists her home with a real estate professional for $220,000 but tells the real estate professional, who is acting as the seller's agent, "I've got to sell quickly because of a job transfer. If necessary, I can accept a price as low as $175,000." The real estate professional tells a prospective buyer to offer $180,000 "because the seller is desperate to sell." The seller accepts the buyer's offer. In this situation, which statement is TRUE? A. The real estate professional violated an established agency relationship with the seller. B. The real estate professional's action did not violate any agency relationship with the seller because the real estate professional did not actually reveal the seller's lowest acceptable price. C. The real estate professional acted properly to obtain a quick offer on the seller's property, in accordance with the seller's instructions. D. The real estate professional violated established fiduciary duties toward the buyer by failing to disclose that the seller would accept a lower price than the buyer offered.
A. The real estate professional violated an established agency relationship with the seller.
Which federal law requires that finance charges be stated as an annual percentage rate? A. Truth in Lending Act B. Real Estate Settlement Procedures Act (RESPA) C. Equal Credit Opportunity Act (ECOA) D. Fair Housing Act
A. Truth in Lending Act
At closing, the selling price is A. a debit to the buyer. B. a debit to the seller. C. a credit to the buyer. D. greater than the loan amount
A. a debit to the buyer.
Against a recorded deed from the owner of record, the party with the weakest position is A. a person with a prior unrecorded deed and who is not in possession. B. a person in possession with a prior unrecorded deed. C. a tenant in possession with nine months remaining on the lease. D. a painter who is half-finished painting the house at the time of the sale and who has not yet been paid.
A. a person with a prior unrecorded deed and who is not in possession
A real estate transaction has a closing date of November 15. The seller, who is responsible for costs up to and including the date of settlement, has already paid the property taxes of $11,160 for the calendar year. On the closing statement, the buyer will be A. debited $1,395. B. debited $9,765. C. credited $1,395. D. credited $9,765.
A. debited $1,395.
The section in a purchase contract that will provide for the buyer to forfeit any earnest money if the buyer fails to complete the purchase is known as a provision for A. liquidated damages. B. punitive damages. C. hypothecation. D. subordination.
A. liquidated damages.
A renter has six months remaining on her apartment lease. The monthly rent is $875. The renter moves out of the apartment for four months, and a friend moves in. The friend pays the renter a monthly rental of $700, and the renter continues paying the full rental amount under her lease to the landlord. This is an example of A. subletting. B. assignment. C. rescission and renewal. D. surrender.
A. subletting.
After an offer is accepted, the seller finds that the real estate professional was the undisclosed agent for the buyer, as well as the agent for the seller. The seller may A. withdraw without obligation to the real estate professional or the buyer. B. withdraw but be subject to liquidated damages. C. withdraw but only with the concurrence of the buyer. D. refuse to sell but be subject to a suit for specific performance.
A. withdraw without obligation to the real estate professional or the buyer.
A purchaser buys a house for $234,500 by making a $25,000 cash down payment and taking out a $209,500 mortgage for 30 years. The lot value is $80,000. If the purchaser wants to depreciate the property over a period of 27 ½ years, what will be the annual depreciation amount using the straight-line method? Round your answer to the nearest cent. A. $3,818.18 B. $4,709.09 C. $5,618.18 D. $7,444.44
C. $5,618.18
In the preceding question, what would the interest portion of the payment be? A. $17.19 B. $257.81 C. $515.63 D. $618.75
C. $515.63
A $100,000 loan at 6% could be amortized with monthly payments of $644 on a 15-year basis or payments of $600 on a 30-year basis. The 30-year loan results in total payments of what percentage of the 15-year total payments? Round your answer to the nearest whole percentage. A. 106% B. 158% C. 186% D. 154%
C. 186%
A resident of Metro City conveys the ownership of an office building to a nursing home. The nursing home agrees that the rental income produced by the building will pay for the expenses of caring for the grantor's parents. When both parents have died, ownership of the office building will revert to the grantor. The estate held by the nursing home is A. a remainder life estate. B. a legal life estate. C. a life estate pur autre vie. D. a temporary leasehold estate.
C. a life estate pur autre vie.
The owner of a house wants to fence the yard for the family pet. When the fence is erected, the fencing materials become real estate through A. severance. B. subrogation. C. annexation. D. attachment.
C. annexation
An easement terminates A. automatically. B. when the owner of the servient tenement wishes to do so. C. if the owners of the dominant and servient tenements become one and the same. D. when a property owner dies.
C. if the owners of the dominant and servient tenements become one and the same.
. A married couple files their income taxes jointly. Last year they sold their home for $340,000. Seven years ago, when they were first married, they bought the house for $250,000 and have lived in it ever since. Based on these facts, which statement is TRUE? A. Under current tax law, the couple will owe a capital gains tax this year on their $90,000 gain. B. Current tax law permits the couple to exclude up to $250,000 in capital gain from their income tax. C. Because their gain is less than $500,000, the couple will owe no capital gains tax this year. D. Under current tax law, the couple will be entitled to a penalty-free withdrawal of up to $10,000 from a 401(k) retirement account to use as a down payment.
C. Because their gain is less than $500,000, the couple will owe no capital gains tax this year.
An investor wants to buy a nearby apartment building and wants to sell a factory to finance the purchase. The investor also wants to incur as little tax liability as possible. What is the best way to accomplish the investor's goals? A. Buy the apartment building before selling the factory B. Pay more for the apartment building than the investor receives for the factory C. Exchange the factory for the apartment building D. Give the factory to a charity and use the tax write-off to purchase the apartment building
C. Exchange the factory for the apartment building
An FHA-insured loan in the amount of $157,500 at 4 ½ % for 30 years closed on July 17. The first monthly payment is due on September 1. Using a 360-day year and assuming that interest is being paid for the day of closing, what was the amount of the interest payment the buyer had to make at the settlement? A. $19.69 B. $275.63 C. $295.35 D. $315.04
B. $275.63
According to an appraisal prepared for a loan approval, a property is worth $425,000. The previous homeowner bought the property for $290,000 and added $50,000 in improvements, for a total of $340,000. The property sold in foreclosure for $325,000. Which amount represents the property's market price? A. $290,000 B. $325,000 C. $425,000 D. $340,000
B. $325,000
If a storage tank that measures 12 feet by 9 feet by 8 feet is designed to store gas that costs $1.82 per cubic foot, what does it cost to fill the tank to one-half of its capacity? Round your answer to the nearest dollar. A. $685 B. $786 C. $864 D. $1,572
B. $786
A rectangular lot is worth $193,600. This value is the equivalent of $4.40 per square foot. If one lot dimension is 200 feet, what is the other dimension? A. 110 feet B. 220 feet C. 400 feet D. 880 feet
B. 220 feet
When a mortgage lender provides the buyer with statements of all fees and charges the seller will incur, the lender is complying with requirements that originated under which federal law? A. Equal Credit Opportunity Act (ECOA) B. Truth in Lending Act (Regulation Z) C. Real Estate Settlement Procedures Act (RESPA) D. Fair Housing Act
C. Real Estate Settlement Procedures Act (RESPA)
Which circumstance would MOST likely be legal under the provisions of the federal Fair Housing Act? A. A lender refuses to make loans in areas where more than 25% of the population is Hispanic. B. A private social club that discriminates against no protected group in granting membership refuses to rent a suite in its members-only vacation facility to a Nigerian family who are not members of the club. C. A church excludes Middle Easterners from membership and rents its nonprofit housing to church members only. D. A real estate professional directs prospective buyers away from areas where they are likely to feel uncomfortable because of their race
B. A private social club that discriminates against no protected group in granting membership refuses to rent a suite in its members-only vacation facility to a Nigerian family who are not members of the club.
The landlord of an apartment building neglected to repair the building's plumbing system. As a result, the apartments did not receive water. If a tenant's unit becomes uninhabitable, what is the MOST likely result? A. Suit for possession B. Claim of constructive eviction C. Tenancy at sufferance D. Suit for negligence
B. Claim of constructive eviction
At closing, how will a proration of prepaid water, gas, and electric charges be reflected? A. Debit to the seller, credit to the buyer B. Debit to the buyer, credit to the seller C. Debit to the buyer only D. Credit to the seller only
B. Debit to the buyer, credit to the seller
A purchaser offers to buy a seller's property by signing a purchase contract. The seller accepts the offer. What kind of title interest does the buyer have in the property at this point? A. Legal B. Equitable C. Defeasible D. No title interest
B. Equitable
The Equal Credit Opportunity Act (ECOA) makes it illegal for lenders to refuse credit to or otherwise discriminate against which applicant? A. Parent of twins who receives public assistance and cannot afford the monthly mortgage payments B. New homebuyer who does not have a credit history C. Single person who receives public assistance D. Unemployed person with no job prospects and no identifiable source of income
C. Single person who receives public assistance
A country music singer who owns a cattle ranch enters into a sale-and-leaseback agreement with a local dentist. Which statement is TRUE of this arrangement? A. The singer retains title to the ranch. B. The dentist receives possession of the property. C. The dentist is the lessor. D. The singer is the lessor.
C. The dentist is the lessor.
A seller is interested in selling a house as quickly as possible and believes that the best way to do this is to have several real estate professionals compete against each other for the commission. The listing agreements with four different real estate professionals specifically promise that if one of them finds a buyer for the property, the seller will be obligated to pay a commission to that real estate professional only. What type of agreement has the seller entered into? A. Executed B. Discharged C. Unilateral D. Bilateral
C. Unilateral
A real estate professional obtained a listing agreement to act as the agent in the sale of a house. An unrepresented buyer has been found for the property, and all agreements have been signed. As agent of the seller, the real estate professional is responsible for which activity? A. Completing the buyer's loan application B. Making sure that the buyer receives copies of all documents the seller is required to deliver to the buyer C. Ensuring that the buyer is qualified for the new mortgage loan D. Scheduling the buyer's inspection of the property
B. Making sure that the buyer receives copies of all documents the seller is required to deliver to the buyer
An insurance company agreed to provide a developer with financing for a shopping center at 7% interest plus an equity position. What type of loan is this? A. Package B. Participation C. Open-end D. Blanket
B. Participation
Which of the following BEST describes the capitalization rate under the income approach to appraising real estate? A. Rate at which a property increases in value B. Rate of return a property earns as an investment C. Rate of capital required to keep a property operating most efficiently D. Maximum rate of return allowed by law on an investment
B. Rate of return a property earns as an investment
A decedent's estate was distributed by will as follows: 54% to the surviving spouse, 18% to the children, 16% to the grandchildren, and the remainder to the decedent's college. The college received $79,000. How much did the children receive? Round your answer to the nearest dollar. A. $105,333 B. $118,500 C. $355,500 D. $658,333
B. $118,500
A buyer bought a house for $225,000. The house, which had originally sold for $148,250, appraised for $210,500. Based on these facts, if the buyer applies for an 80% mortgage, what will be the amount of the loan? A. $118,600 B. $168,400 C. $180,000 D. $196,750
B. $168,400
A parcel of vacant land 80 feet wide and 200 feet deep was sold for $500 per front foot. How much money would a real estate professional receive as a 60% share of a 10% commission on the sale? A. $1,600 B. $2,400 C. $6,000 D. $4,000
B. $2,400
In one commercial building, a tenant intends to start a small health food shop. An identical, adjacent building houses a showroom leased to a major national retailing chain. Both tenants have long-term leases with identical rents. If the appraiser uses a capitalization rate for the store leased to the national retailing chain that is lower than the rate for the other building, which statement is TRUE? A. The indicated value of the chain's property will be lower than the indicated value of the food-shop property. B. The indicated value of the chain's property will be higher than the indicated value of the food-shop property. C. The appraiser would then be compelled to make use of the sales comparison approach to value. D. It would indicate the appraiser believes a building occupied by a chain-store tenant is more valuable than an identical one occupied by a health food shop.
B. The indicated value of the chain's property will be higher than the indicated value of the food-shop property.
A real estate professional received a deposit, along with a written offer from a buyer. The offer stated: "The offeror will leave this offer open for the seller's acceptance for a period of 10 days." On the fifth day, and before acceptance by the seller, the offeror notified the real estate professional that the offer was withdrawn and demanded the return of the deposit. Which statement is TRUE in this situation? A. The offeror cannot withdraw the offer; it must be held open for the full 10-day period, as promised. B. The offeror has the right to withdraw the offer and secure the return of the deposit any time before being notified of the seller's acceptance. C. The offeror can withdraw the offer, and the seller and the real estate professional will each retain one-half of the forfeited deposit. D. While the offeror can withdraw the offer, the real estate professional is legally entitled to declare the deposit forfeited and retain all of it in lieu of the lost commission
B. The offeror has the right to withdraw the offer and secure the return of the deposit any time before being notified of the seller's acceptance.
The state wants to acquire a strip of farmland to build a highway. Does the state have the right to acquire this land for public use? A. Yes, the state's right is called condemnation. B. Yes, the state's right is called eminent domain. C. Yes, the state's right is called escheat. D. No, under the U.S. Constitution, private property may never be taken by state governments or by the federal government.
B. Yes, the state's right is called eminent domain.
At closing, prorations for unpaid real estate taxes are shown as A. a credit to the seller and a debit to the buyer. B. a debit to the seller and a credit to the buyer. C. a credit to both the seller and the buyer. D. a debit to both the seller and the buyer.
B. a debit to the seller and a credit to the buyer.
After a storeowner's spouse died, he could no longer maintain the store. A woman who wished to open a store agreed to move into the entire space and pay for the remaining seven years on the lease. The landlord agreed to the arrangement. This is known as a lease A. assumption. B. assignment. C. surrender. D. breach.
B. assignment.
An apartment manager decides not to purchase flood insurance. Instead, the manager installs raised platforms in the basement storage areas and has the furnace placed on eight-inch legs. This form of risk management is known as A. avoiding the risk. B. controlling the risk. C. retaining the risk. D. transferring the risk
B. controlling the risk.
A real estate professional representing a seller is asked by the client to make sure that the deed to the buyer does not reveal the actual sales price. In this case, the real estate professional A. must inform the client that only the actual price of the real estate may appear on the deed. B. may ask that a deed be prepared that shows only nominal consideration of $10. C. should inform the seller that either the full price should be stated in the deed or all references to consideration should be removed from it. D. may show a price on the deed other than the actual price, provided that the variance is not greater than 10% of the purchase price.
B. may ask that a deed be prepared that shows only nominal consideration of $10.
A property has a net income of $30,000. An appraiser decides to use a 12% capitalization rate rather than a 10% rate on this property. The use of the higher rate results in A. a 2% increase in the appraised value. B. a $50,000 increase in the appraised value. C. a $50,000 decrease in the appraised value. D. no change in the appraised value.
C. a $50,000 decrease in the appraised value.
A property manager leased a store for three years. The first year, the store's rent was $1,000 per month, and the rent was to increase 10% per year thereafter. The manager received a 7% commission for the first year, 5% for the second year, and 3% for the balance of the lease. What was the total commission earned by the property manager? A. $840.40 B. $1,613.10 C. $1,935.60 D. $2,785.40
C. $1,935.60
If a borrower takes out a $90,000 loan at 7 ½ % interest to be repaid at the end of 15 years with interest paid annually, what is the total interest that the borrower will pay over the life of the loan? A. $10,125 B. $80,000 C. $101,250 D. $180,000
C. $101,250
A broker's employment agreement with a sales associate provides a commission share of 65% to the sales associate. What is the sales associate's compensation if the sales price of a property is $895,000, the broker is entitled to a 6 ½ % commission, and there is no cooperating broker? A. $16,621.43 B. $34,905.00 C. $37,813.75 D. $58,175.00
C. $37,813.75
The monthly rent on a warehouse is $1 per cubic yard. Assuming the warehouse is 36 feet by 200 feet by 12 feet high, what is the annual rent? A. $3,200 B. $9,600 C. $38,400 D. $115,200
C. $38,400
A farmer owns the W ½ of the NW ¼ of the NW ¼ of a section. The adjoining property can be purchased for $300 per acre. Owning all of the NW ¼ of the section would cost the farmer A. $6,000. B. $12,000. C. $42,000. D. $48,000.
C. $42,000.
Which phrase, when placed in a print advertisement, would MOST nearly comply with the requirements of the Truth in Lending Act (Regulation Z)? A. "5 ½ % interest" B. "5 ½ % rate" C. "5 ½ % annual interest" D. "5 ½ % annual percentage rate"
D. "5 ½ % annual percentage rate"
A conventional mortgage loan closed on July 1 for $165,000 at 3.75% interest amortized over 25 years at $857.06 per month. Using a 360-day year and interest paid in arrears, what would the principal amount be after the monthly payment was made August 1? A. $164,936.30 B. $164,484.38 C.$164,142.94 D. $164,658.57
D. $164,658.57
A building's owner pays a property manager an 8 ½ % commission based on the unit's annualized rent for each new tenant. Last year, the manager signed five new tenants—three at $795 per month, one at $1,200 per month, and one at $900 per month. What was the total amount of the property manager's new-tenant commissions for that year? A. $381.23 B. $2,952.90 C. $3,685.47 D. $4,574.70
D. $4,574.70
If a home that cost $342,500 three years ago is now valued at 127% of its original cost, what is its current market value? A. $364,750 B. $395,000 C. $424,500 D. $434,975
D. $434,975
What is the amount of tax payable if a property's assessed value is $185,000 and the tax rate is 40 mills in a community in which an equalization factor of 110% is used? A. $4,625.00 B. $5,087.50 C. $7,400.40 D. $8,140.00
D. $8,140.00
A buyer signs a buyer representation agreement under which the real estate professional will help this client find a three-bedroom house in the $185,000 to $200,000 price range. A seller comes into the real estate professional's office and signs a listing agreement to sell a two-bedroom condominium for $170,000. Based on these facts, which statement is TRUE? A. The buyer is the real estate professional's client; the seller is the real estate professional's customer. B. The buyer is the real estate professional's customer; the seller is the real estate professional's client. C. While both the buyer and the seller are clients, the real estate professional owes the fiduciary duties of an agent only to the seller. D. Because both the buyer and the seller are the real estate professional's clients, the real estate professional owes the fiduciary duties of an agent to both.
D. Because both the buyer and the seller are the real estate professional's clients, the real estate professional owes the fiduciary duties of an agent to both.
The rescission provisions of the Truth in Lending Act (Regulation Z) apply to which transaction? A. Home purchase loans B. Construction lending C. Business financing D. Consumer credit
D. Consumer credit
At closing, the cost of the lender's title insurance policy required for a new loan is usually shown as which of the following? A. Credit to the seller B. Credit to the buyer C. Debit to the seller D. Debit to the buyer
D. Debit to the buyer
What type of lease establishes a rental payment and requires the lessor to pay for the taxes, insurance, and maintenance on the property? A. Percentage B. Net C. Expense only D. Gross
D. Gross
Maria, Frank, and Judy are joint tenants. Judy sells her interest to Laura, and then Frank dies. As a result, which statement is TRUE? A. Frank's heirs are joint tenants with Laura and Maria. B. Frank's heirs and Maria are joint tenants, but Laura is a tenant in common. C. Maria is a tenant in common with Laura and Frank's heirs. D. Maria and Laura are tenants in common.
D. Maria and Laura are tenants in common.
A search of the public record regarding title to a property is MOST likely to provide information about which item? A. Encroachments B. Rights of parties in possession C. Inaccurate survey D. Mechanics' liens
D. Mechanics' liens
If a veteran wishes to refinance a home by changing to a VA-guaranteed loan and the lender insists on 3 ½ discount points, which option is available to the veteran? A. Refinance with a VA loan, provided the lender charges no discount points B. Refinance with a VA loan, provided the lender charges no more than two discount points C. Be required to pay a maximum of 1% of the loan as an origination fee D. Proceed with the refinance loan and pay the discount points
D. Proceed with the refinance loan and pay the discount points
In a township, which statement is TRUE? A. Section 31 lies to the east of Section 32. B. Section 18 is by law set aside for school purposes. C. Section 6 lies in the northeast corner of the township. D. Section 16 lies to the north of Section 21.
D. Section 16 lies to the north of Section 21.
A tenant's landlord plans to sell the building in which the tenant lives to the state so that a freeway can be built. The tenant's lease has expired, but the landlord permits the tenant to stay in the apartment until the building is torn down. The tenant continues to pay the rent as prescribed in the lease. What kind of tenancy does this tenant have? A. Holdover tenancy B. Month-to-month tenancy C. Tenancy at sufferance D. Tenancy at will
D. Tenancy at will
After a buyer purchased a property from a seller, they both decided to rescind the recorded transfer. To do this, what must happen? A. The buyer must return the deed to the seller. B. The parties must record a notice of rescission. C. The parties must simply destroy the original deed in the presence of witnesses. D. The buyer must make a new deed to the seller.
D. The buyer must make a new deed to the seller.
A seller signed a 90-day listing agreement with a real estate professional. Two weeks later, the seller was killed in an accident. What is the present status of the listing? A. The listing agreement is binding on the seller's estate for the remainder of the 90 days. B. Because the seller's intention to sell was clearly defined, the listing agreement is still in effect and the real estate professional may proceed to market the property on behalf of the seller's estate. C. The listing agreement is binding on the seller's estate only if the real estate professional can produce an offer to purchase the property within the remainder of the listing period. D. The listing agreement was terminated automatically when the seller died.
D. The listing agreement was terminated automatically when the seller died.
Which of the following is an example of external obsolescence? A. Numerous pillars supporting the ceiling in a store B. Leaks in the roof of a warehouse, making the premises unusable and, therefore, unrentable C. Coal cellar in a house with central heating D. Vacant, abandoned, and run-down buildings in an area
D. Vacant, abandoned, and run-down buildings in an area
One real estate professional asked another, "Will I have to prove that I was the procuring cause in order to collect a commission if my seller sells the property without my help?" The other real estate professional answered, "No, not if you have A. an option listing." B. an open listing." C. an exclusive agency listing." D. an exclusive right-to-sell listing."
D. an exclusive right-to-sell listing."
A real estate professional is employed by a buyer. When the real estate professional finds a property that the buyer might be interested in buying, she is careful to find out as much as possible about the property's owners and why their property is on the market. The real estate professional's efforts to keep the buyer informed of all facts that could affect a transaction is the duty of A. accounting. B. loyalty. C. confidentiality. D. disclosure
D. disclosure
It is discovered after a sale of a parcel of land that the land parcel is 10% smaller than the seller represented it to be. The real estate professional who passed this information on to the buyer is A. not liable as long as the real estate professional only repeated the seller's data. B. not liable if the misrepresentation was unintentional. C. not liable if the buyer actually inspected the parcel. D. liable if the real estate professional knew or should have known of the discrepancy
D. liable if the real estate professional knew or should have known of the discrepancy
