Real Estate Quiz

80 Percent (%)

In order to qualify as older persons housing, what percentage of units must be occupied by persons 55 or older? A 80 Percent (%) B 70 Percent (%) C 100 Percent (%) D 50 Percent (%)

Master deed

What is another common term for the "Declaration of Condominium" the developer files with the county? A Master deed B Declaration of Cooperative C Major Condo Deed D Commercial deed

South Carolina LLR.

What is the name of the entity that establishes the extensive and detailed discussions about trust account management included in the Trust Account Guidelines? A South Carolina LLR. B South Carolina REC. C Department of Labor and Licensing. D National Board of Realtors.

A All of the answer choices provided are correct

1. Which of the following is a permissible restriction on a fee simple estate? A All of the answer choices provided are correct B Homeowner's association covenant C Utility easement D Local zoning restrictions

D. A lifetime

A life estate entitles the holder to occupy and use the underlying real property for...? A 50 Years B An indeterminate period of time C 20 Years D A lifetime

Group boycotts

A new start-up comes to a city and offers real estate services that make heavy use of technology and an app that has become popular that uses the MLS services. The start-up offers potential clients the opportunity to sell their homes for just a 1.5% commission. The other brokerages in the city decide to pull all their listing from the MLS and create their own listing database. What are they guilty of...? A Price-fixing B Market allocations C Tie-in agreements D Group boycotts

They are putting an illegal tie-in agreement on the sale of the buildable lot.

A real estate agent has been trying to sell a non-buildable lot for over a year. They get a listing for a nearby adjacent lot, which is buildable and immediately gets a dozen offers put on it. The agent lets the bidders know that if they buy the non-buildable lot, they will have a better chance of winning the bid. Which of the following statements is true about the agent? A They are putting an illegal tie-in agreement on the sale of the buildable lot. B They are using a tie-in agreement to help their client with a property that has been hard to sell. C They are weeding out the offers that are not coming from serious buyers. D They are protecting the interests of all of their clients who have given them listings.

Four inches, twenty-seven inches

Alex is showing a multi-story apartment building to an investor. The buyer plans to modify all units to accommodate visually impaired tenants. To make sure that corridors, halls, and connecting paths are compliant, the investor needs to make sure nothing protrudes from the wall more than ............ into the path, and is positioned no lower than ............ from the floor. A Four inches, twenty-seven inches B Six inches, thirty-six inches C Four inches, twenty-five inches D Eight inches, twelve inches

SC Department of Health and Environmental Control.

Along with the Ocean and Coastal Resource Management and the South Carolina Coastal Council, the SC Coastal Zone Management Act is managed by which party? A SC Department of Health and Environmental Control. B SC Department of Health and Human Services. C SC Real Estate Commission. D SC Committee on Coastal Environmental Studies.

Group boycott

An agreement between members of a trade to exclude other members from fair participation in the trade is known as...? A Group boycott B Market allocation C Price fixing D tie-in agreement

C Fee simple determinable estate

An estate that will end automatically when the stated event or condition occurs is known as a/an...? A Fee simple estate B Per autre vie C Fee simple determinable estate D Leasehold estate

Capital Gains or Losses, Capital gains (or loses) are reported at the sale of a house.

Brenda has lived in her home for ten years. Her job is transferring her to another state, and she can't decide whether to convert her home to a rental property or sell it outright. Her real estate agent reminds her that if she sells her property, she can deduct mortgage origination points when reporting ............ on her federal taxes. A Relocation Expenses B Non-farming Business Activity C Capital Gains or Losses D None of the answer choices provided are correct

20 percent

Denis bought a home fresh out of college from his parents for $10,000. He is ready to sell the home now, 20 years later, which substantially increased in value. He is concerned about paying capital gains taxes. His real estate agent told him that the long-term tax rate for most homeowners ranges from zero to ............, depending on several factors, and referred him to a tax accountant to discuss his particular situation in detail. A 35 percent B 10 percent C 5 percent D 20 percent

Zoning Office

Every development must comply with local ordinances. Which agency/official typically sets per-capita parking space requirements? A Zoning Office B Fire Marshall C Building & Permit Office D Department of Transportation

A False: Fannie Mae requires the cost approach

Fannie Mae loans for manufactured housing should not be done using the cost approach? A False: Fannie Mae requires the cost approach B True: appraisers can use their best judgment C True: Fannie Mae does not accept the cost approach D True: the seller decides on the right approach

Compensation which the property manager will receive. The property manager should be fairly compensated for the work they do, and without that compensation being spelled out there is no contract. As long as compensation, property identification, and the names and signatures of all involved parties are included the contract is valid. Other information can be added and often is, but it isn't required.

For a property manager, the minimum content that can be in a property management agreement in South Carolina includes the property identification, the names and signatures of all the parties involved, and what? A Compensation which the property manager will receive. B Financial information of the tenants. C Duration or length of the management agreement. D Details of the property manager's license with the state.

All of the answer choices provided are correct

How can an estate at will be terminated? A All of the answer choices provided are correct B The landlord transfers or sells the property to someone else C The landlord dies D The tenant dies

A fine for each violation they committed. When it comes to severity, a fine is the next penalty in line. Licensees who are fined may see fines anywhere from $500 to $5,000 (Dollars) per violation, depending on the severity of the violation. In some cases, the fines the licensee must pay can add up to a lot of money very quickly.

If the REC determines that a public reprimand isn't considered enough punishment for the violation the licensee committed, what does the next level of penalty involve? A A fine for each violation they committed. B Jail time for their wrongdoings. C Suspension of their license or a probationary period. D License revocation for a period of at least five years.

A FNMA Manufactured Housing loans, special use buildings, property in the process of being built, or property to be rebuilt

In what cases is the cost approach to appraisal used? A FNMA Manufactured Housing loans, special use buildings, property in the process of being built, or property to be rebuilt B When no property in the area sold recently. C When the lender insists on it. D When the seller insists on it.

Prohibit smoking within five feet of all buildings

Jason is a real estate agent working with a client that wants to build a commercial complex to serve retail clients. Jason suggests his client insist the builder do all of the following to enhance fire protection and safety in the buildings, EXCEPT? A Build adequate firewalls between floors and individual retail locations B Apply sufficient spray-on fireproofing material to steel members to achieve a 2-hour protection window C Install fire-suppression systems D Prohibit smoking within five feet of all buildings

Sex offenders

Megan's Law makes information regarding ............ available to the public. A Sex offenders B Convicted murderers C Convicted robbers D Convicted drunk drivers

Commercial

Office buildings can only be built in what type of zones? A Commercial B Residential C Industrial D All of the answer choices provided are correct

Community property

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse is known as...? A Tenancy by the entirety B Tenancy in common C Community property D Joint tenancy

Mrs. Murphy , The Mrs. Murphy exemption applies to residential houses under 5 units. The owner must also live in one of the units.

The exemption under the FHA that applies to buildings with four or fewer units in which the owner lives in one of the units is often referred to as the ............ exemption. A Mrs. Murphy B Miss Murph C Four or less D Small building

Life tenant

The person who retains the life estate interest is called the? A Remainderman B Life Tenant C Trustee D Lessor

Tax-deferred exchange

This refers to the trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade? A Tax-deferred exchange B Capital loss C Property swap D None of the answer choices provided are correct

Principle of progression

Which of the following principles states that the worth of a lesser valued residence tends to be enhanced by association with higher valued residences in the same area...? A Principle of substitution B Principle of change C Principle of anticipation D Principle of progression

Bulk regulations, The bulk regulations determine what can be built on a property. For example, the bulk regulations will dictate the minimum yard dimensions, the maximum building height, and the total amount of square footage that may be built on a property.

The .............dictate the allowed building envelope for a building on a property. A Comprehensive plan B Assessment maps C Bulk regulations D Municipal codes

Sex

The Fair Housing Amendments Act of 1974 made it illegal to discriminate on the basis of? A Ancestry B Religion C Sex D Income Levels

was created to help enforce the Sherman and Clayton Anti-Trust Laws.

The Federal Trade Commission Act...? A was created to help enforce the Sherman and Clayton Anti-Trust Laws. B deals solely with television advertising. C is a 21st century law to regulate trusts in the digital age. D offsets much of the regulations established by the Sherman and Clayton Anti-Trust Laws.

Devisee

What are the people who will inherit Real Property in a Will called? A Beneficiaries B Trustees C Devisee D Grantees

Beneficiaries

What are the people who will inherit property and other assets held in Trust called? A Trustees B Beneficiaries C Grantees D Devisee

Beneficiaries.

What are the people who will receive Personal Property from a Will called? A Beneficiaries B Trustees C Devisee D Grantees

Temporarily possess, occupy and use real estate

What does a leasehold estate entitle a tenant to do? A Transfer or sell real estate B Permanently possess, occupy and use real estate C Sublease real property D Temporarily possess, occupy and use real estate

Estate at sufferance

What type of leasehold estate exists when a tenant didn't renew their lease but didn't move out when the lease ended? A Estate at will B Estate for years C Periodic estate D Estate at sufferance

Estate for years

What type of leasehold estate is created if a lease is for a definite, limited period of time? A Estate for years B Periodic estate C Estate at will D Estate at sufferance

Fee simple ownership

What type of ownership does a condominium owner have in the unit they occupy? A Share in the cooperative B Personal property ownership only C Fee simple ownership D Lease for a period of years

All of these are true. Condemnation: The act of taking private property for public use by a political subdivision upon payment to owner of just compensation. Expropriation: The action by the state or an authority of taking property from its owner for public use or benefit. Appropriation: The action of taking something for one's own use. typically without the owner's permission.

Eminent domain can also be called...? A Condemnation B Expropriation C Appropriation D All of these are true

True (T)

The formula for the cost approach is Value = Replacement cost - depreciation + value of land? A True (T) B False: The replacement cost is all that matters C False; only the land value matters D False: Only depreciation matters

Jones versus Alfred H. Mayer Company

The landmark Supreme Court case that confirmed the Civil Rights Act was legal was...? A Jones versus Alfred H. Mayer Company B Smith versus Alfred H. Mayer Company C Jones versus Smith Company D Jones versus Smith

A. All of the choices are correct.

The life tenant in a life estate is responsible for? A All of the choices are correct B Paying property taxes C Maintaining property insurance D Repairing and maintaining the property

B Demand, utility, scarcity, transferability

What does the acronym DUST stand for? A Durability, utility, scarcity, transferability B Demand, utility, scarcity, transferability C Demand, usefulness, scarcity, transferability D Demand, utility, size, transferability

The more useful a property, the higher the value. Utility is defined as the ability to give satisfaction and/or excite desire for possession.

What does utility mean? A The more useful a property, the higher the value. B The local utilities going to a property. C The best use of a property. D The useful life of a property.

Cost of building a property to given specifications., The cost approach is defined as an analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.

What is a cost approach appraisal? A Cost of building a property to given specifications. B Cost of buying a property. C Cost of buying a property and the underlying land. D All of the answer choices provided are correct

To maintain property values and establish community standards.

What is the primary reason for private land use controls? A To maintain property values and establish community standards. B To raise money for community activities. C To ensure that streets are maintained. D To establish a common and distinctive appearance for a neighborhood.

The ability to acquire another property that is both desirable and similar in a short period of time., The principle of substitution affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in making the substitution.

What is the principle of substitution? A The ability to acquire another property that is both desirable and similar in a short period of time. B When a more valuable property can be substituted for a lesser value. C When it takes a long time to find a similar home. D When building a home costs more than moving into one.

Property taxes and dues to pay maintenance and upkeep.

What types of fees are condo owners with mortgages generally responsible for paying, in addition to their mortgage payments and utility costs? A Property taxes and dues to pay maintenance and upkeep. B Dues to pay maintenance and upkeep. C Property taxes only. D There are no additional fees associated with condo ownership.

Value in use

What value is most commonly used for commercial property? A Investment Value B Mortgage Value C Value in use D Insured value

Professionals , While fair housing is designed to protect specific classes against discrimination, it's illegal to specifically target them with advertising. Some's professional status is not a protected class.

Which of the following classes of people can be targeted by advertising? A People of color B Professionals C Muslim people and Hindu people D Gay and trans people

All of the answer choices provided are correct

Which of the following is a common reason for establishing a trust? A All of the answer choices provided are correct B Avoiding probate C Planning for blended families D Limit federal and state estate taxes

Month-to-month lease

Which of the following is an example of a periodic estate? A One-year lease B Month-to-month lease C Five-year lease D No formal lease in place

Advertising that uses a Bible quote

Which of the following is considered discriminatory advertising? A Advertising a general no-pets rule B Advertising the ability to speak a foreign language C Advertising disabled-friendly features like access ramps and bathroom handrails in units D Advertising that uses a Bible quote

All of the answer choices provided are correct

Which of the following requirements are included in the local zoning ordinances? A Maximum building height requirements B Yard setback requirements C Floor area ratio requirements D All of the answer choices provided are correct

Wetlands, protected habitat lands, shorelines, and flood plains/zones.

Which of the following types of land and property are governed by state, local, and even federal laws? A Wetlands, protected habitat lands, shorelines, and flood plains/zones. B Wetlands, roadsides, historical landmarks, and parking areas. C Wetlands, flood plains/zones, shorelines, and sidewalks. D Flood plains/zones, shorelines, wetlands, and commercial property.

A person with a dependent

Which of the following would be considered a protected party under Familial Status? A A person with a dependent B An unmarried person C A person 55 or older D A person under the age of 18

Either the landlord or the tenant, or both of them

Who can terminate an estate at will? A The tenant only Either the landlord or the tenant, or both of them B The landlord only C Either the landlord or the tenant, or both of them D Judicial action only

Trustee

Who is the person who holds nominal title of assets held inside of a trust? A Trustee B Trustor C Settlor D Grantor

Ask the listing agent to work with the current owners to find an elevation certificate (EC) that could have been performed before they paid off their mortgage, as well as getting you a history of the claims against the house. Advise the buyer to talk to an insurance company and their lender about the additional insurance cost and the feasibility of the loan. Then ask for the seller to reduce the price of the home accordingly. Homes built before 1975 weren't required to have an EC, and older mortgages and insurance policies didn't require them either. Any buyer is going to need an EC for their home loan and their insurance policy. Getting an EC and factoring in costs related to it should be part of the home buying negotiation. Ask the listing agent to work with the owners and determine a way forward to acknowledge these costs in a reduced sales price.

You're representing a buyer who is interested in a house that has been owned and occupied by an older couple for over 40 years. The house is in a flood plain, and was built before 1975. The current owners have had the same insurance policy for the entire time and they paid the mortgage off years ago. The owners say they don't have an Elevation Certificate (EC). How should you advise your buyer when they're ready to make an offer on the property? A Tell the listing agent they should have a land surveyor come and perform an EC before you advise your buyer to make an offer on the property. B Call the seller's insurance company and ask them if they have an EC from previous years that your buyer can use. C. Ask the listing agent to work with the current owners to find an elevation certificate (EC) that could have been performed before they paid off their mortgage, as well as getting you a history of the claims against the house. Advise the buyer to talk to an insurance company and their lender about the additional insurance cost and the feasibility of the loan. Then ask for the seller to reduce the price of the home accordingly. D. Ask the listing agent to contact the county or city flood plain administrator and FEMA and ask them why there is no EC on the property.

BPE stands for base flood plain elevation, and homes that are less than three (3) feet above the BPE according to their EC will have higher flood risk ratings and higher insurance premiums than homes that are more than 3 feet above the BPE.

You're representing a seller who is motivated to sell their property, but their home's elevation certificate says the home is 2.5 feet above the BPE. What does BPE mean and how would this affect the home's potential sales price and value? A. BPE stands for base flood plain elevation, and homes that are less than three (3) feet above the BPE according to their EC will have higher flood risk ratings and higher insurance premiums than homes that are more than 3 feet above the BPE. B. BPE stands for base flood plain elevation, and homes that are less than three (3) feet above the BPE according to their EC are impossible to sell. C. BPE stands for big flood plain exclusion, and the home is enough above the minimum height to be safe. It won't be difficult to sell this home, and it will have more affordable insurance premiums and less risk. D. BPE stands for broad plain elevation and 2.5 feet is an adequate height above the broad flood plain. There should be no problem getting affordable home insurance or flood danger.

A 100 year flood means that a property in the zone has a 1% chance of experiencing a flood that large every year. A 500 year flood has a 1% chance of occurring in every 5-year period.

You've recently gotten two listings in a flood zone. One seller tells you that their property is in a 500 year flood zone, and another tells you theirs is in a 100 year flood zone. What do you tell buyers when they ask you what a 100 year flood or a 500 year flood means? A. A 100 year flood means that a property in the zone has a 1% chance of experiencing a flood that large every year. A 500 year flood has a 1% chance of occurring in every 5-year period. B. A 100 year flood happens once every 100 years, and a 500 year flood happens every 500 years. C. A 100 year flood is a big flood and a 500 year flood is a really big flood. D .You can get flood insurance for a 100 year flood, but it probably won't cover damage from a 500 year flood.