Quizzes
False
Freehold estates last for a specified length of time, such as one year. True False
True
Laws cannot guarantee an ethical or moral marketplace.
False
Lenders may charge prepayment penalties on mortgage loans insured or guaranteed by the federal government. True False
False
MOST real estate contracts are implied contracts. True False
True
Many trade organizations serve the real estate business. The largest is the National Association of REALTORS® (NAR). True False
False
A real estate assistant would never be required to have a real estate license.
True
ARELLO promotes state licensing standards.
True
After both a buyer and a seller have executed a sales contract, the buyer acquires an interest in the land. This interest is called equitable title. True False
False
Price-fixing, which is the practice of setting prices for products or services rather than letting competition in the open market establish those prices, is legal. True False
True
Real estate is defined as land at, above, and below the earth's surface, plus all things permanently attached to it, whether natural or artificial. True False
True
The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program. True False
True
The Federal Reserve Board (the Fed) establishes a discount rate of interest for the money it lends to commercial banks. True False
True
Co-owners can also be called concurrent owners. True False
False
Condominium laws are often called vertical property acts. True False
False
If a state licensing authority's regulations conflict with statutory law, the regulations will prevail.
True
Improvements, such as water lines and storm sewers, made on public lands to serve a new development are called off-site improvements. True False
False
The Institute of Real Estate Management (IREM) is affiliated with the National Association of Real Estate Brokers (NAREB). True False
False
The MOST common homeowners insurance policy is called a broad form. True False
False
A sales associate's compensation is determined by the client.
True
The individual unit owners of a condominium own the common elements as tenants in common. True False
True
The real estate professional's duty to a third party (customer) includes disclosure of all facts that the real estate professional knows or should reasonably be expected to know that materially affect the value or desirability of the property. True False
False
In an exclusive buyer representation agreement, the buyer can work with more than one broker. True False
True
Under a deed of trust, the trustor retains equitable title. True False
False
In tenancy in common, each tenant holds a divided fractional interest in the property. True False
True
In traditional common law, the relationship in which the agent is held in a position of special trust and confidence by the principal is one of a fiduciary. True False
False
Traditionally, ownership rights of real property are described as a barrel of legal rights. True False
$0.73
What was the asking price per square foot (to the nearest cent)? A) $0.79 B) $0.73 C) $0.87 D) $1.47
True
Unlike other freehold estates, a life estate is not inheritable. It passes to future owners according to the provisions of the life estate. True False
False
Judicial foreclosure allows property to be sold without a court order after the mortgagee has given sufficient public notice. True False
True
Most states specifically allow a real estate professional to go over the terms of a preprinted contract with a client without risking an accusation of the unlawful practice of law. True False
True
A balloon payment will be required in a partially amortized loan. True False
False
A benefit of investing in real estate is that it does NOT require active management. True False
False
A straight loan is also called a fully amortized loan. True False
True
A universal agent is a person empowered to do anything the principal could do personally. True False
True
The Federal Reserve System regulates the flow of money and interest rates in the marketplace through its member banks by controlling their reserve requirements and discount rates. True False
False
The primary mortgage market helps lenders raise capital to continue making mortgage loans. True False
True
When a survey also shows the location, size, and shape of buildings on the lot, it is called a spot survey. True False
False
When information is taken from the internet, it is always accurate. True False
False
A certificate of title provides a guarantee of ownership. True False
True
A disadvantage of investing in real estate is that it involves a high degree of risk. True False
True
A general partnership is dissolved and must be reorganized if one partner dies, withdraws, or goes bankrupt. True False
True
A joint tenancy can be created by conveying a deed or giving the property by will or living trust. True False
False
A licensee is a person who has satisfied the requirements of the employing broker. True False
True
A metes-and-bounds description starts at a designated place on the parcel called the point of beginning. True False
True
A real estate broker is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services.
True
A real estate broker's compensation is specified in the contract with the client.
False
A real estate licensee must be an expert in all areas of real estate law. True False
False
A sales associate can carry out all the same activities as a real estate broker.
True
If one or more of the owners in a listing agreement is married, the spouse's consent and signature on the contract to release any marital rights is required in most states. True False
True
In a buyer-agency agreement, just as in any agency agreement, the source of compensation does NOT determine the relationship. True False
False
In a lien theory state, a mortgagor actually gives legal title to the mortgagee (or some other designated individual) and retains equitable title. True False
False
In a unilateral contract, both parties promise to do something—one promise is given in exchange for another. True False
False
In an exclusive agency listing, the seller is obligated to pay the broker a commission regardless of who sells the property. True False
True
In an open listing, the seller is obligated to pay a commission to only the broker who successfully produces a ready, willing, and able buyer. True False
True
In order to establish title by adverse possession, there must be proof of an exclusive, nonpermissive use that is ONCHA—open, notorious, continuous, hostile, and adverse to the true owner's interest—for the statutorily prescribed period. True False
False
In some states, instead of preparing a complete sales contract, real estate professionals may prepare a shorter document known as a briefer. True False
False
Condemnation is the right of the government to acquire privately owned real estate for public use. Eminent domain is the process by which the government exercises this right, by either judicial or administrative proceedings. True False
False
Courts have encouraged the use of automatic extension clauses in exclusive listings. True False
False
Covenants, conditions, and restrictions (CC&Rs) are police powers that affect land use. True False
Yes, he stayed within his budget.
Curt wants to buy a property for no more that $1 per square foot. "They are asking $380,000 for this property. It says here that it is 1 furlong by 12 chains. Curt talks with his agent. "Help me out here. Can I afford one furlong by 12 chains?" "Yes, the price is well below your maximum of $1 per square foot." If Curt paid $360,000 for the parcel, did Curt he make a good deal, considering his budget? A) No, he paid more than $1 per square foot. B) No, he went well over his budget. C) Yes, even though he went over his budget. D) Yes, he stayed within his budget
False
Funds in individual retirement accounts (IRAs) can never be used for a down payment on a home. True False
True
Group boycotting, allocation of customers or markets, and tie-in agreements are all prohibited acts under the Sherman Antitrust Act. True False
522,720
How many square feet are in the parcel Curt wants to purchase? A) 522,720 square feet B) 43, 560 square feet C) 475,200 square feet D) 7,920 square feet
False
Shopping centers, stores, theaters, hotels, and parking facilities are examples of special-purpose properties. True False
False
States' licensing rules and regulations do NOT have the same force and effect as statutory law.
True
All 50 states regulate the activities of real estate professionals.
True
Nonjudicial foreclosure procedures may be used when the security instrument contains a power-of-sale clause. True False
False
A title is not considered transferred until the deed is actually delivered to and accepted by the grantee. The grantor must deliver the deed to the grantee personally. True False
True
All 50 states have passed laws that require real estate brokers and real estate salespeople to be licensed. True False
True
An encumbrance is not an estate, so it does NOT allow possession. True False
False
An express agreement occurs when the actions of the parties indicate that they have mutually consented to an agency. True False
True
An express agreement, in which the parties formally express their intention to establish an agency and state its terms and conditions, may be either oral or written. True False
False
An oral will is called a holographic will. True False
False
Because it is possible for a single real estate firm or an individual real estate professional to perform all the services and handle all classes of property, few firms and professionals specialize in any one type. True False
True
Before signing a contract, the seller's main concerns typically are the selling price of the property and the net proceeds. True False
True
Benchmarks are permanent reference points that have been established throughout the United States. True False
True
Escheat is a process by which the state may acquire privately owned real or personal property. True False
False
Exaggeration of a property's benefits is called puffing and is illegal. True False
False
Federal law requires that private mortgage insurance (PMI) must automatically terminate if a borrower has accumulated at least 20% equity in the home and is current on mortgage payments. True False
False
Ownership by more than one person is called ownership in severalty. True False
False
Public records are NOT maintained by the clerks of the court. True False
True
Real estate license laws are intended to protect the public.
False
Real estate license laws do not include disciplinary systems.
False
Real property is also called chattels. True False
True
Rescission returns the parties in a contract to their original position, whereas cancellation terminates a contract without a return to the original position. True False
True
Substitution of a new contract for an existing contract is called novation. True False
True
The owner who transfers title is called the grantor, and the person who acquires title is called the grantee. True False
True
The payments on all debts—normally including long-term debt such as car payments, student loans, or other mortgages—should not exceed 36% of monthly income. True False
True
The person who makes a will is called a testator. True False
True
Title to property may be transferred without the owner's consent by involuntary alienation. True False
False
The death of a shareholder in a corporation results in the dissolution of the corporation. True False
False
The fundamentals of general agency law have changed dramatically over the past two hundred years. True False
True
The legal description of a property is based on information collected through a process called a survey. True False
True
The legal presumption that information may be obtained by an individual through due diligence is called constructive notice. True False
True
The promissory note is called the note or financing instrument. True False
True
The purpose of the Electronic Signatures in Global and National Commerce Act (E-Sign) is to make contracts (including signatures) and records legally enforceable, regardless of the medium in which they are created. True False
True
The title insurance policy generally identifies certain uninsurable losses called exclusions, including those resulting from issues such as zoning. True False
False
The universal agent's authority to act on behalf of the principal is significantly limited. True False
True
Trade fixtures that are not removed become the real property of the landlord. Acquiring the property in this way is known as accession and is related to the legal principle of constructive annexation. True False
True
Two characteristics of real estate govern the way the market reacts to the pressures of supply and demand: uniqueness and immobility. True False