Utah Real Estate General Sales

Which of the following is an issue with trade fixtures? (a) Vital to the business function (b) Historical significance (c) Physically attached (d) Fits the decor theme

(a) Vital to the business function

M starts a small business teaching people how to do unique types of quilting and stitchery and hires one person to help her. She finds an old house to rent cheaply. It only has one very small 1/2 bath, and five steps to get in the front door. In this case, ADA requirements: (a) are violated because a handicapped person would not have equal access. (b) only apply when there are more than 15 employees. (c) don't apply as it would be too costly for a small business to make major construction modifications. (d) do not apply since there's only one employee.

(a) are violated because a handicapped person would not have equal access.

When considering income tax issues, Which of the following relates to the phrase: "Two of the last five years"? (a) Home office deduction (b) $250,000 exemption (c) Interest deduction (d) $550,000 exemption

(b) $250,000 exemption

Using the sales comparison method, if a subject property had an extra full bathroom ($6,000) that the comparable property did not, but was on a less desirable lot ($5,000), the proper adjustment would be: (a) No adjustment necessary. (b) Add $1,000 to the comparable property. (c) Add $11,000 to the comparable property. (d) Add $1,000 to the subject property.

(b) Add $1,000 to the comparable property.

A subordination clause in a loan would involve which of the following actions? (a) Assignment to a new borrower (b) Alteration of priority (c) Abandonment by the borrower (d) Abrogation

(b) Alteration of priority

Which of the following is most like the "or more" clause in a loan: (a) Graduated payment clause (b) Prepayment privilege clause (c) Reappraisal clause (d) Index clause

(b) Prepayment privilege clause

A buyer wants to assume a loan without taking on any personal liability for the loan. In the purchase offer, relative to the loan he should state he will: (a) Subordinate to the seller's interest (b) Take title on a "subject to" basis (c) Assume the loan and make the payments (d) Hypothecate and accelerate the loan

(b) Take title on a "subject to" basis

Willful destruction or neglect of property which affects the rights of the remainderman is: (a) Sufferance (b) Waste (c) Vandalism (d) Succession

(b) Waste

Which of the examples below is NOT an exception to the requirements of the Fair Housing Laws? (a) An owner of a triplex who lives in one unit and rents out the other two. (b) A church-owned apartment building that has always rented only to members, and lets anyone join their church (c) Condo complex that requires that everyone who buys or lives there must be at least 45 years old. (d) The owner of a single family home renting a bedroom, and who advertises: "Females only."

(c) Condo complex that requires that everyone who buys or lives there must be at least 45 years old.

The borrower used a document which gave the trustee power of sale as the security for the loan to buy the home. What document would contain that power: (a) Mortgage (b) Trustee's Deed (c) Deed of Trust (d) Uniform Real Estate Contract

(c) Deed of Trust

Q decides to rent a single family home. The agreement prohibits the tenant from assigning or subletting. Which right in the Bundle of Rights does the tenant NOT share in? (a) Quiet Enjoyment (b) Possession (c) Disposition (d) Use and Control

(c) Disposition

HUD oversees each of the following federal laws or programs EXCEPT: (a) Real Estate Settlement Procedures Act (b) GNMA (c) Truth-in-Lending (d) FHA

(c) Truth-in-Lending

Which of the following would require a variance? (a) A business in an area that had recently been rezoned to residential. (b) An area between two varying types of zoning classifications to give protection to one of the areas. (c) A church in an area zoned for residential properties. (d) A 9,000 square foot lot where zoning regulations require 10,000 square foot lots.

(d) A 9,000 square foot lot where zoning regulations require 10,000 square foot lots.

Under a mortgage foreclosure, K made the highest bid and got the property. Within 24 hours K had paid the full amount to the sheriff. What would K receive? (a) A certificate of sale (b) A special warranty deed (c) A bargain and sale deed (d) A quit claim deed

(a) A certificate of sale

An All-Inclusive Trust Deed is most closely related to all of the following EXCEPT: (a) Blanket mortgage (b) Subject-To loan (c) A wraparound mortgage (d) A Uniform Real Estate Contract

(a) Blanket mortgage

The buyers walked into a model home of a builder. The agent of the seller/builder had them sign an unrepresented buyer form. Which of the following applies? (a) Caveat emptor (b) Pur autre' vie (c) Estoppel (d) Habendum

(a) Caveat emptor "buyer beware"

When the lease expired, Q, the lessee didn't leave as requested. Q kept giving excuses, saying a new residence was coming available soon. This creates: (a) Estate at sufferance (b) Estate at will (c) Periodic tenancy (d) Tenancy in common

(a) Estate at sufferance

The Federal Housing Administration is a mortgage lender allowing home ownership with little down payment. (a) False (b) True

(a) False

The key difference between a lien theory state and a title theory state is: (a) In a lien theory state, the property owner holds title but in a title theory state the lender or trustee holds title. (b) In a title theory state, the property owner always holds title. (c) Only a lien theory state uses legal documents to convey property rights. (d) A title theory state will collect more transfer taxes because of the extra steps.

(a) In a lien theory state, the property owner holds title but in a title theory state the lender or trustee holds title.

The sales comparison approach to property valuation: (a) Is based on the concept that a buyer is willing to pay only as much money as he/she would have to pay for another similar property. (b) Has nothing to do with the buyer or seller, it is determined statistically by the appraiser. (c) Is based on how much more a buyer would pay to upgrade from his/her present home. (d) Is viewed to be the least accurate because it is based on buyer/seller emotion.

(a) Is based on the concept that a buyer is willing to pay only as much money as he/she would have to pay for another similar property.

Which of the following statements is NOT applicable to a holographic will. (a) It cannot convey real property. (b) It can designate who will raise the minor children. (c) It can convey any kind of property.

(a) It cannot convey real property.

Which of the following is NOT true about a sale and leaseback of a commercial property? (a) Ownership does not actually transfer (b) Seller frees up funds (c) Buyer can deduct depreciation from his taxes (d) Seller is able to deduct rent payments from his gross income

(a) Ownership does not actually transfer

The key difference between a promissory note and a mortgage is: (a) Promissory notes are signed by people personally obligated to repay the loan. (b) A promissory note can be assumed by a new property owner. (c) A mortgage is signed by anyone obligated to repay the loan. (d) There are no personal guarantees on a promissory note.

(a) Promissory notes are signed by people personally obligated to repay the loan. Explanation: (Mortgage Law) The Promissory Note represents a personal promise by every one who signs the Note to repay the loan. Every person who signs the Note individually promises to repay the entire amount regardless of how well the other signers meet their personal obligations.

Zachary received a warranty deed after purchasing a property. He saw that his name had been misspelled. Which of the following documents would he execute to correct the title? (a) Quit Claim Deed (b) General Warranty Deed (c) Special Warranty Deed (d) Bargain and Sale Deed

(a) Quit Claim Deed

In the list below, which item does NOT belong with foreclosure under a trust deed? (a) Statutory period of redemption (b) Special warranty deed (c) Three months (d) Equitable period of redemption

(a) Statutory period of redemption

Using the sales comparison method, the property adjustment for a comparable property that is viewed to be worth $10,000 more because it is newer would be: (a) Subtract $10,000 from the comparable property. (b) Subtract $10,000 from the subject property. (c) Add $10,000 to the subject property. (d) Add $10,000 to the comparable property.

(a) Subtract $10,000 from the comparable property.

Agent G was going to leave XYZ Real Estate and go to ABC Realty. G's great-aunt had listed her house and wanted G to still be her agent. Which of the following answers would accomplish this in accordance with the law? (a) The broker of XYZ agrees to cancel the listing. (b) Everything stays the same and G continues to service her aunt's listing. (c) The listing has to stay with XYZ and the aunt will be assigned a new agent. (d) The listing is assigned from XYZ to ABC

(a) The broker of XYZ agrees to cancel the listing.

Agent G was going to leave XYZ Real Estate and go to ABC Realty. G's great-aunt had listed her house and wanted G to still be her agent. Which of the following answers would accomplish this in accordance with the law? (a) The broker of XYZ agrees to cancel the listing. (b) The listing is assigned from XYZ to ABC (c) Everything stays the same and G continues to service her aunt's listing. (d) The listing has to stay with XYZ and the aunt will be assigned a new agent.

(a) The broker of XYZ agrees to cancel the listing.

In which of the following situations involving a 1031 would income taxes NOT have to be paid? (a) The exchange of a fourplex in the city for a small farm of equal value. (b) Exchanging a duplex and a car for a triplex (c) The exchange of two properties resulting in one owner owing $5,000 less than before on the property loan. (d) The exchange of a boat which can be a residence for a single family home.

(a) The exchange of a fourplex in the city for a small farm of equal value. Explanation: (Taxation) The 1031 applies to "like for like" or real property for real property. Personal property involved would be taxable and mortgage or debt relief is taxable.

J carried back a 2nd mortgage when his home was sold. Now he needs some ready cash and is going to sell it to a secondary lender for 60% of face value. This discounting of the loan does NOT have which of the following advantages? (a) The person who bought the house and has the loan will now pay a higher interest rate. (b) It provides an increased yield for the secondary lender. (c) It gets a lump sum of cash immediately for J. (d) The secondary lender has a secured investment at relatively high interest.

(a) The person who bought the house and has the loan will now pay a higher interest rate.

When an apartment building is sold, how should the renters' security deposits be handled on the HUD 1 statement? (a) They will be a debit to the seller and a notation in the buyer's credit section. (b) They will appear as a debit to the seller and a credit to the buyer. (c) They will not be noted in the settlement statement. (d) They will be a debit to both since they belong to the renters.

(a) They will be a debit to the seller and a notation in the buyer's credit section.

Z went to a trust deed foreclosure sale on an investment property that looked like a good deal. There were other investors, but Z won the bid. Which of the following would Z expect to receive. (a) Trustee's Deed (b) Deed of Trust (c) Sheriff's Deed (d) Trust Deed

(a) Trustee's Deed

A broker found a ready, willing, and able buyer to purchase seller Bond's house at the listing terms. Before agreeing to the sale, seller Bond introduced a new restriction stating that the sale could only be completed if the buyer agreed not to build a tennis court on the property. The buyer refused and withdrew from the negotiations. Is the broker entitled to a commission? (a) Yes, because the broker had fulfilled the listing contract and must be paid. (b) No, because the buyer did not complete the purchase. (c) Yes, because the seller can change the terms in a listing agreement any time he wants. (d) No, because seller Bond never accepted the buyer's first offer.

(a) Yes, because the broker had fulfilled the listing contract and must be paid.

The purpose of a document receipt is to verify that: (a) all parties have received fully signed copies of the Real Estate Purchase Contract. (b) the buyer signed all documents involved with the loan. (c) both the buyer and seller received all appropriate documents at the closing. (d) all involved agents and brokers have signed the purchase agreement.

(a) all parties have received fully signed copies of the Real Estate Purchase Contract

Which if the following requirements is specific to RESPA? (a) A three-day right of rescission must be observed. (b) Borrower can see the HUD1 form 24 hours before closing. (c) A historical example must be given if the loan is an ARM. (d) If a "trigger" term is used, all numbers must be used in advertising.

(b) Borrower can see the HUD1 form 24 hours before closing.

Which of these situations does NOT cause a contract to become voidable? (a) One of the parties is a minor (b) Contract is not in writing (c) Menace (d) Duress

(b) Contract is not in writing

All of the following actions terminate a listing EXCEPT: (a) Abandonment by the broker (b) Death of the listing salesperson (c) Death of the principal (d) Death of the listing broker

(b) Death of the listing salesperson

On the settlement statement for a property closing on March 16th of the year, the proration of property taxes would appear as: (a) Debit seller, debit buyer (b) Debit seller, credit buyer (c) Credit seller, credit buyer (d) Credit seller, debit buyer

(b) Debit seller, credit buyer

You present an offer from a qualified, willing and able minority buyer. The seller refuses to sell because the individual is a minority. You can legally do all the following EXCEPT: (a) Make the buyers aware they could possibly sue the seller. (b) Do not show this house to any other minorities. (c) Inform HUD. (d) Tell the owners they are in violation of Fair Housing Laws.

(b) Do not show this house to any other minorities.

This ad appearerd in the newspaper. "Beautiful three bedroom home in Hispanic neighborhood. Owners moving to neighboring state. Purchase price $80,000, APR 6.5%." This ad would violate which of the following laws? (a) Truth in Lending (b) Federal Fair Housing (c) RESPA (d) Interstate Federal Full Disclosure Act.

(b) Federal Fair Housing

Which of the following statements is FALSE about conventional loans? (a) The GSE's dominate this market category (b) Lenders may not establish their own underwriting standards (c) Congress establishes the loan limits each year for 1-to-4-family structures (d) A non-conforming loan can be sold in the secondary market

(b) Lenders may not establish their own underwriting standards

What method of appraising would be most effective when appraising a vacant parcel of land? (a) Income approach (b) Market data approach (c) Cost replacement approach (d) Capitalization approach

(b) Market data approach

All of the following are facts about flood insurance EXCEPT: (a) Flood insurance rates are fixed by the National Flood Insurance Program. (b) Properties in a flood zone identified by FEMA must carry flood insurance. (c) Floods can occur throughout the United States and are the number one natural hazard. (d) Homeowner's insurance does not cover loss from floods.

(b) Properties in a flood zone identified by FEMA must carry flood insurance.

Once the appraiser calculates the adjusted prices of all the comparables, the final step for developing a single estimate of market value is called: (a) Highest and best use. (b) Reconciliation. (c) Weighted substitution. (d) Gather data and investigage.

(b) Reconciliation.

A credit score: (a) Is a statistical average of willingness to pay future obligations. (b) Represents the probability of a serious delinquency on an account over the next 24 months. (c) Is a numerical estimate of borrower's ability to honor past obligations. (d) Represents Mr. Isaac's mathematical genius in predicting loan losses.

(b) Represents the probability of a serious delinquency on an account over the next 24 months.

Truth in Lending or Reg. Z includes all the following requirements EXCEPT: (a) Disclosure of costs (b) Settlement Costs & You (c) Advertising restrictions (d) Use of APR

(b) Settlement Costs & You

K and N owned homes in the same subdivision, bought the same year and the same size lot and type of floor plan. K found out N's taxes were $480 less. Where would K appeal to get lower taxes? (a) The Board of Adjustment (b) The Board of Equalization (c) The County Recorder's Office (d) The Division of Real Estate

(b) The Board of Equalization

When the two parties agree in writing to have the agent act as a limited agent, most fiduciary duties still apply. But the principals are giving up something. Which best describes the change in fiduciary duties under limited agency? (a) There are limitations on the duty of obedience required from the agent. (b) The loyalty duty for single agents is replaced with neutrality. (c) Loyalty obligations now include both buyer and seller. (d) The full disclosure duty has been expanded to include both parties.

(b) The loyalty duty for single agents is replaced with neutrality.

Which of the following statements is true of both Truth in Lending and RESPA regulations? (a) The booklet Settlement Costs & You must be given. (b) They cover single to four-family dwellings. (c) APR must be used in advertising. (d) They cover loans to small businesses.

(b) They cover single to four-family dwellings.

The contract entered into between the principal broker of an office and the sales agents is usually which type of contract? (a) Bilateral (b) Unilateral (c) Qualified (d) Defeasible

(b) Unilateral

Any offer without an Earnest Money Deposit is considered which of the following? (a) Implied (b) Valid (c) Unenforceable (d) Unilateral

(b) Valid

Which of the following is an issue with trade fixtures? (a) Historical significance (b) Vital to the business function (c) Physically attached (d) Fits the decor theme

(b) Vital to the business function

Which of the following is NOT a method for creating an easement? (a) Prescription (b) Mutual Agreement (c) A neighbor's use for 7 years (d) Implication

(c) A neighbor's use for 7 years

Four brothers own a property as joint tenants. It has appreciated quite a bit in value since they made the investment to buy it. One brother wants to sell and get his money out, and he has a ready, willing and able buyer. The others refuse to sign the offer. What is a possible legal solution? (a) An estate pur autre'vie (b) Exercise the defeasance clause (c) A partition action (d) A writ of execution

(c) A partition action

Which of the following would NOT be considered to have special agency? (a) A real estate agent who has an exclusive right-to-sell listing on a home. (b) An agent who is given the responsibility to seek a ready, willing, and able buyer. (c) A real estate agent given the responsibility to take care of all of the seller's real estate matters. (d) A real estate agent who takes a listing on a single family dwelling.

(c) A real estate agent given the responsibility to take care of all of the seller's real estate matters.

The income capitalization approach for valuing real estate depends on each of the following elements EXCEPT: (a) A property that generates a verifiable stream of operating income. (b) Operating income data for similar properties. (c) Accurate depreciation information. (d) Recent sales data on similar properties.

(c) Accurate depreciation information.

In which of the following situations is a special warranty deed most likely to be used? (a) In a divorce the husband gives up his rights to the home. (b) A standard sale of an existing residence. (c) After a death, the executor grants the property to the devisee. (d) A lease with an option to buy.

(c) After a death, the executor grants the property to the devisee.

An easement by prescription can best be described as: (a) An easement recommended by a doctor for a sick land owner (b) A right of way created for landlocked property (c) An adverse use (d) An easement created by eminent domain

(c) An adverse use

Each of the following are stated goals of the Federal Reserve System EXCEPT: (a) Ensure the safety and soundness of the nation's banking and financial system. (b) Protect credit rights of consumers. (c) Balance consumer demand for low mortgage interest rates with the large foreign investor's desire for more profitable mortgage interest rates. (d) Manage national monetary policy to help achieve full employment and stable prices.

(c) Balance consumer demand for low mortgage interest rates with the large foreign investor's desire for more profitable mortgage interest rates.

Broker L lists a home and offers subagency through the MLS. Broker S takes a buyer to the house and then writes an offer to purchase. Broker L has never met the buyer. Broker S has never met the seller. Broker S does not have a written contract with the buyer. Which is true? (a) Broker L is the agent of the buyer. (b) Broker L is the subagent of the buyer. (c) Both Broker L and Broker S are agents of the seller. (d) Broker S is the agent for the buyer and seller.

(c) Both Broker L and Broker S are agents of the seller.

Bob the buyer has made an offer on Sam the seller's property. That offer has been accepted. Bob is working on finalizing his loan for the purchase as part of the contingencies of the agreement. What kind of agreement exists between Bob and Sam? (a) Executed (b) Sale pending (c) Executory (d) Voidable

(c) Executory

A new apartment building was constructed with an elevator. Under the Fair Housing Amendment Act of 1988, what would the owner have to do. (a) Not have a "No Pets" rule in case a blind person rented one unit. (b) Make all hallways and doorways extra wide. (c) Make sure thermostats in all rooms are reachable from a wheelchair. (d) Adapt all kitchens with sink, stove, etc. low enough for wheelchair use

(c) Make sure thermostats in all rooms are reachable from a wheelchair.

The lender wanted a very thorough appraisal report for the shopping mall being considered for financing. Which type of appraisal report would accomplish that? (a) Survey (b) Letter Form (c) Narrative (d) Check List

(c) Narrative

Q is willing to seller finance the purchase of his home which he owns free and clear. Q would be considered the: (a) Grantee (b) Leasee (c) Payee (d) Payor

(c) Payee

People who execute a document are referred to as: (a) Notary Republics (b) Testators (c) Signatories (d) Executors

(c) Signatories

The phrase "the primary evidence of a loan" best describes: (a) The defeasance clause (b) The trust deed (c) The promissory note (d) The mortgage document

(c) The promissory note

A new Truth-in-Lending (TIL) disclosure must be provided: (a) Within 3 business days of discovering the annual percentage rate changed by more than 1/4% (b) Within 7 business days of discovering the annual percentage rate changed by more than 1/4%. (c) Within 3 business days of discovering the annual percentage rate changed by more than 1/8%. (d) At least 3 days prior to closing whether there has been a change in annual percentage rate or not.

(c) Within 3 business days of discovering the annual percentage rate changed by more than 1/8%.

The relationship between the lessor and the lessee could be defined as which of the following? (a) tenants in common (b) life estate (c) tenancy for years (d) joint tenancy

(c) tenancy for years

Which of the following requirements must be met for a REIT (real estate investment trust) to be legal? (a) Any number of members and 95% paid out as profits (b) 1,000 members: 96% paid as profits (c) 1,000 members: all funds paid out as profits (d) 100 members: 90% paid as profits

(d) 100 members: 90% paid as profits

A person lived on a property openly and notoriously under "color of title." This situation has to do with: (a) Fee simple defeasible (b) An owner who holds a quit claim deed (c) Easement by prescription (d) Adverse possession

(d) Adverse possession

Each of the following are stated goals of the Federal Reserve System EXCEPT: (a) Protect credit rights of consumers. (b) Manage national monetary policy to help achieve full employment and stable prices. (c) Ensure the safety and soundness of the nation's banking and financial system. (d) Balance consumer demand for low mortgage interest rates with the large foreign investor's desire for more profitable mortgage interest rates.

(d) Balance consumer demand for low mortgage interest rates with the large foreign investor's desire for more profitable mortgage interest rates.

Progression and regression are considered "sub-principles" relating to overbuilding for an area, or purchasing the least expensive model home in a development of new homes. The main principle involved is: (a) Contribution (b) Competition (c) Cycle of Change (d) Conformity

(d) Conformity

A lessee had two years to go on a five-year lease. Which would release the tenant from further obligation to pay rent after they voluntarily moved out? (a) Actual eviction (b) Habendum (c) Habeus Corpus (d) Constructive eviction

(d) Constructive eviction

47. Which of the following relates to a deed: (a) Personal property (b) Lien (c) Tax assessment (d) Exceptions and reservations

(d) Exceptions and reservations

A particular house that was for sale had 60 amp service. The recommendation these days is for 100 amps. This is an example of: (a) Deferred maintenance (b) Physical deterioration (c) Economic obsolescence (d) Functional obsolescence

(d) Functional obsolescence

Which is NOT correct about PMI? (a) For "high-risk loans" lenders are required to automatically remove PMI when the loan balance reaches 77% of the original purchase price. (b) To request cancellation of PMI, you must be current on your loan. (c) You may request PMI removal when the current loan balance equals 80% of the original purchase price or current appraised value, whichever is less. (d) In order to remove PMI, the lender must receive a request from the borrower.

(d) In order to remove PMI, the lender must receive a request from the borrower.

The three tools used by the Federal Reserve to reduce the supply of money are: (a) Sell securities in the open market, raise lending standards, raise the reserve requirement. (b) Increase enforcement of Regulation Z, raise the reserve requirement, buy securities in the open market. (c) Increase the reserve requirement, lower the 10-Year Treasury bond rate, raise the discount rate. (d) Increase the reserve requirement, raise the discount rate, sell securities in the open market.

(d) Increase the reserve requirement, raise the discount rate, sell securities in the open market.

Rent control laws have what effect? (a) They raise the general economy and everyone likes them. (b) They benefit lessors and lessees equally. (c) Tenants like them because it means the lease has no termination date. (d) Landlords don't like them as they must carry the burden of inflation.

(d) Landlords don't like them as they must carry the burden of inflation.

Certain defaults, unfortunately, happen quite often and so they are planned for and consequences outlined in the contract. An example is the earnest money deposit. This is: (a) Hypothecation (b) Pur autre' vie (c) Subrogated damages (d) Liquidated damages

(d) Liquidated damages

P, who is 25, did not realize Q was only 17, and entered into a contract with Q. P no longer wants to go through with the deal, but Q does. Which of the following statements apply? (a) The contract is void if Q didn't have a co-signer. (b) The contract is valid and binding on both P and Q. (c) This is definitely a voidable contract for P. (d) P has no choice, but it is a voidable contract for Q.

(d) P has no choice, but it is a voidable contract for Q.

What is the right of a mortgagor to regain clear title to the property upon full payment of the debt after the foreclosure sale? (a) Reinvestment (b) Reversion (c) Release (d) Redemption

(d) Redemption

Automated underwriting systems offer the following benefits EXCEPT: (a) Immediate feedback for correcting deficiencies (b) Speed and low operating cost (c) Objective-free of discrimination (d) Reduced closing cost to borrower

(d) Reduced closing cost to borrower

Which of the following are NOT typically paid in arrears? (a) 11 months of property taxes (b) Loan interest (c) An agent's commission (d) Rent

(d) Rent

Which of the following is NOT a means of regulating land? (a) Zoning (b) Deed restrictions (c) Building codes (d) Resolutions passed by the local Board of Realtors

(d) Resolutions passed by the local Board of Realtors

What is the name of the principal base and meridian in the state of Utah? (a) Utah (b) Wasatch (c) Uintah (d) Salt Lake

(d) Salt Lake

G followed the steps of adverse possession, hoping to end up owning the property. Five years into it, he was transferred across the country. H picked up where he left off, completing the requirements to seven years. This is called: (a) Abandonment (b) Severance (c) Subrogation (d) Tacking

(d) Tacking

George Smith, who owns his property fee simple, grants a three-year lease to Tom Green. During the second year of the lease, George sells the property to Ned Gray. What happens to the lease when the sale closes? (a) Property cannot be sold and title transferred to a new owner when a lease is in effect. (b) It must be negotiated between Gray and Mr. Green, the leasee. (c) It terminates. (d) The lease remains in effect with Mr. Gray and Mr. Green.

(d) The lease remains in effect with Mr. Gray and Mr. Green.

H gives a life estate to her mother's doctor, which states that the doctor will have the property for as long as "Mom" is alive. Mom is very healthy, but the doctor is now dead. What happens? (a) Mom gets the property. (b) Mom's heirs get the property (c) The property goes back to H. (d) The property goes to the doctor's heirs

(d) The property goes to the doctor's heirs

Which of these contain only the essential elements of a real estate contract? (a) in writing, consideration, notarization (b) mutual consent, legality, consideration, recordation (c) in writing, capacity, acknowledgment (d) legal purpose, capacity, mutual consent, in writing

(d) legal purpose, capacity, mutual consent, in writing

At a closing on a loan, the APR is higher than the interest rate because: (a) the lender paid some costs that contributed to the loan. (b) interest rates fluctuate between the application for the loan and the closing date. (c) the interest rate is calculated on a 360 day calendar. (d) the borrower paid some extra costs to obtain the loan.

(d) the borrower paid some extra costs to obtain the loan.

In selling their home, the sellers are willing to let the buyers take over their existing loan. The lender agrees. But the sellers want to be sure they have no further liability for that loan amount. They could ensure the lack of liability with a(n): a) Novation (b) Assignment (c) Release of lien (d) Fiduciary agreement

a) Novation

The sales comparison approach to property valuation: (a) Is viewed to be the least accurate because it is based on buyer/seller emotion. (b) Is based on the concept that a buyer is willing to pay only as much money as he/she would have to pay for another similar property. (c) Is based on how much more a buyer would pay to upgrade from his/her present home. (d) Has nothing to do with the buyer or seller, it is determined statistically by the appraiser.

b) Is based on the concept that a buyer is willing to pay only as much money as he/she would have to pay for another similar property.

97. An apartment building with 12 units has 6 covered parking spaces, all of which are assigned, a handicapped tenant moves in. Which of the following is true? (a) Under no circumstances does a parking space have to be provided if the owner doesn't want to do it. (b) The handicapped person must be given a space as soon as one becomes available if it is necessary for his enjoyment of the property. (c) The owner must make provisions so the handicapped person can have a parking place. (d) The owner must add additional space if one isn't available.

b) The handicapped person must be given a space as soon as one becomes available if it is necessary for his enjoyment of the property.

A loan is amortized as though for 25 years, but is due sooner and paid off in a balloon payment. This is known as a(n): (a) ARM (b) Gap loan (c) Straight loan (d) Partially amortized loan

d) Partially amortized loan