Practice Exams

How many miles long and how many miles wide is a section?

1

In an FHA loan points equal ___ percent of the loan amount

1

The Internal Revenue Services form that summarizes and reports transaction data from a closing is ____

1099-S

a man had a loan for $60,000 and he had to pay 2.5 points. How much would he have to pay in cash?

1500

How many square miles is a township?

36

How many feet are in an acre?

43,560

How many feet in a mile?

5,280

How many acres are in a section?

640

An instrument that records the history of the property is called the ___ __ ___

Abstract of Title

An ___ ___ ___ is a broker who renders real estate services for a fee.

Advisory service provider

According to the Real Estate Settlement and Procedures Act, a uniform settlement statement must be used whenever the loan is to be sold to the __ ___ ___ __

Federal National Mortgage Association (FNMA)

The organizations's public mission and defining goal is to help more families achieve the American Dream of homeownership:___ ___ ___ __

Federal National Mortgage Association (Fannie Mae)

___ ____ ___ ___ guaranty allows mortgage lenders to obtain a better price for their mortgage loans available

Government National Mortgage Association (Ginnie Mae)

Old English law to protect consumers from fraud. Says all contracts must be in writing to be enforceable and that all leases for more than one year must be in writing to be enforceable. This is called The ___ ___ __

Statute of Frauds

Which mortgage allows a person to buy a home with no money down? __

VA

Encumbrances and police powers are a. interests that do not include possession. b. limited forms of an estate. c. unrelated to interests. d. types of public interests.

a

The major sources of real estate law are legislation at federal, state and local level, and a. court decisions. b. professional real estate associations. c. real estate commissions. d. local practices.

a

Under the doctrine of littoral rights, an owner claims ownership of all of the land underlying a lake where there are three other abutting property owners. Which of the following is true? a. The owner's claim is invalid, because the state owns the underlying land. b. The owner's claim is invalid, because the underlying land is shared equally with the other owners. c. The owner's claim is invalid, because he may only own underlying land to the middle of the lake. d. The owner's claim is valid, because the lake is navigable.

a

Which of the following is true of a homestead? a. A homestead interest cannot be conveyed by one spouse. b. A homestead interest cannot be passed to the children of the head of household. c. A homestead interest is a form of conventional life estate. d. A homestead is a primary or secondary residence occupied by a family.

a

___ ___ is the time when the title actually changes hands- after the delivery and acceptance phase of the deed. All the property rights are now in the hands of the buyer unless otherwise stated in the deed.

actual title

___ ___ ___ ___ is when a third person takes the place of one of the original people in the contract and then all the rights and responsibilities become his

assignment of a contract

A one-year lease on a house has expired, but the tenant continues sending monthly rent checks to the owner, and the owner accepts them. What kind of leasehold estate exists? a. Estate for years b. Estate from period to period c. Estate at will d. Estate at sufferance

b

The overriding test of whether an item is a fixture or personal property is a. how long it has been attached to the real property. b. its definition as one or the other in a sale or lease contract. c. how essential it is to the functioning of the property. d. how it was treated in previous transactions.

b

Unlike tenants in common, joint tenants a. own distinct portions of the physical property. b. cannot will their interest to a party outside the tenancy. c. may own unequal shares of the property. d. cannot sell their interest to outside parties.

b

What distinguishes a freehold estate from a leasehold estate? a. A freehold includes the right to dispose or use. b. A leasehold endures only for a specific period of time. c. A freehold cannot be defeasible. d. A leasehold is subject to government restrictions

b

What part of a non-navigable waterway does the owner of an abutting property own? a. To the low-water mark b. To the middle of the waterway c. To the high-water mark d. None

b

Which of the following is an illustration of the legal concept of elective share? a. A surviving spouse places a lien on a debtor's property. b. A widow who was excluded from a will makes a claim to a portion of the couple's principal residence. c. A spouse who loses her home because of her husband's gambling debt sues in court for exemption from the debt. d. A widower whose spouse died without a will sues to change the provisions of the will.

b

___ ____ is the foremost factor contributing to commercial and residential demand in a market is.

base employment

__ ___ are a short cut surveyors use to speed up the surveying process. The bench mark is a permanent brass plate, placed in the ground and it notates the feet above sea level at that location.

bench marks

____ contract -When both parties agree to do something.

bilateral

An exclusive right to sell has been signed. What best describes the type and status of this contract? ___ ___

bilateral executory

What is the primary thrust of federal involvement in real estate law? ___ ___ of ___

broad regulation usage

The primary distinction between the legal concepts of real estate and real property is that real property includes ownership of a ___ __ __

bundle of rights

buyer Carr went to get a FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points bc it is below market rates. Which best describes this situation? Points can be charged to either the ___ or the ____

buyer seller

An interest in real estate is best defined as ownership of a. the full bundle of rights to real property. b. an estate. c. one or more of the bundle of rights to real property. d. the right to possession and use of real property

c

In which of the following cases would a person probably be required to have a real estate license? a. As a favor, John Smith helps his sister locate an apartment, since he knows the area. b. Mary performs secretarial duties for her boss, areal estate investor. c. Bruce gets hired to find an office suite for a friend who is relocating her business. d. Laura lands a new job managing the reservations desk at a new hotel.

c

Surface rights, air rights and subsurface rights are a. inviolable. b. unrelated. c. separable. d. not transferrable.

c

What is the "Doctrine of Prior Appropriation?" a. A pre-emptive zoning ordinance b. The right of government to confiscate land and improvements c. A doctrine that gives the state control of water use and the water supply d. A real estate tax applied to owners of water rights

c

Which of the following items are paid in arrears a. Taxes and insurance b. Rents and interest c. Taxes and interest d. Rents and insurance

c

3 Ways To Sue for Breach of Contract: -Suit for ____ -Suit for ___ ___ -Suit for ____

cancellation specific performance damages

A buyer's financing arrangements are often concluded at closing, because the lender wants to ensure proper handling of the ____ for the loan.

collateral

____ -conditions or terms yet to be performed

contingency

Bilateral Unilateral Expressed Implied Executory Executed Formal Contract Informal Contract ARE ALL TYPES OF ____

contracts

Which of the following items are paid in advance? a. Taxes and insurance b. Rents and interest c. Insurance and interest d. Rents and insurance

d

Which of the following terms refers to the rights of a property that abuts a stream or river? a. Allodial b. Alluvial c. Littoral d. Riparian

d

___ is the level plain which is used by the bench mark to determine elevation and from which surveyors measuring begins.

datum

A prorated expense on the settlement statement is a ___ to one party and a ___ to another.

debit credit

The amount a buyer owes at closing is equal to the excess of the buyer's ___ over the buyer's ___

debits credits

A person died intestate. His property would pass according to ___ and ____

decent distribution

A clause in a mortgage releasing the indebtedness once the loan is paid off is: ____

defeasance

Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald's house sold for $29.000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Ron still owes? Seek a ___ ___

deficiency judgement

The ___ of ___ and ___ ____ was created to stabilize the nation's mortgage markets and expand opportunities for home ownership and affordable rental housing.

department housing urban development (HUD)

____ stamps are used to document the payment of a transfer tax.

documentary

____ ___ -Part of the consideration is paid in an earnest money deposit. This is not all of the consideration; it is only a good faith deposit to insure the seller that the buyer will honor his promises and complete the sale.

earnest money

For a veteran to obtain a VA loan, the VA must issue a certificate of ___

eligibility

The ___ ___ ___ ___ ensures that all consumers are given an equal chance to obtain credit. This doesn't mean all consumers who apply for credit get it; factors such as income, expenses, debt, and credit history are considerations for creditworthiness.

equal credit opportunity act (ECOA)

___ ___ - The interest a buyer has in a property between the time of acceptance (notification) of the contract and the actual closing. When the transaction closes, the buyer receives legal or actual title to the property.

equitable title

___ contract- Everything is signed done deed

executed

___ contract- A contract in progress, something is left to be done, such as the deed being issued.

executory

____ contract- Is a contract of certain conditions like, the house must be paid by this date.

expressed

____ contract- Everyone's signed it. It's enforceable.

formal

License regulators, empowered by state law to oversee brokerage practices, may take punitive actions against ___ or ____

fraud misrepresentation

Which of the following ways of specializing is common in the real estate brokerage business? By ____

geography

The primary distinction(s) between the primary and secondary mortgage market is that the secondary market is fundamentally a ____ or ____ process

holding warehousing

What are the three unique physical characteristics of land? __ ___ ____

immobile indestructible heterogeneous

___ contract- The contract is implied by the person's actions, like getting into a taxi you are implying you will pay the taxi driver

implied

A construction boom in a market is an indication that prices have been ___

increasing

___ contract- Usually oral and not enforceable.

informal

Which form of financing would be the greatest risk to the buyer? ___ ___ ___ mortage

installment land contract

The basic difference between an FHA and a VA loan is that FHA ___ loans, while VA ____ them.

insures guarentees

In an installment land contract what type of title did the seller retain until the loan was paid? ____ title

legal

The way to determine the identity of a property is called a ___ ___

legal description

Certain essentials must be present to make a contract valid. These are? 1.__ ___ parties 2.___ and ___ 3.____ 4.____ of ____

legally competent offer acceptance consideration legality of object

A principal role of the real estate commission (REC) is to administer state ___ ___

licensing requirements

___ ___ -an amount of monies (usually the earnest money) in payment. If he accepts ___ ___, he may not sue for Specific Performance. *when the seller is wronged.

liquidated damages

the amount of a loan expressed as a percentage of the value of the real estate offered as security is: __ ___ __ __

loan to value ratio

The primary distinction between the legal concepts of land and real estate is that land does not include ___-___ structures

man made

One method of "legal description". The oldest of all the measuring systems used in the United States. It relies on monuments and point of beginning POB. Degrees are compass headings, based on a 360° circle. This is called ___ __ ___

metes and bounds

3 forms of legal descriptions are: -___ and ___ -___ ____ survey -___ and ____ number on a plat map

metes bounds rectangular government lot block

___ ___ -A seller agrees to an offer exactly as it was written. No changes are made to the offer; it is signed by the seller as it was written. It becomes a contract after the buyer is notified of the acceptance.

mirror image

Another name for a Lender Policy is ___ ___. This protects the ____ as a condition of obtaining the loan.

mortgagee's policy lender

An instrument that evidences one person owing another money is a(n) ___

note

____ is a change in the original terms, such as an extension of time for closing or loan commitment. All other terms of the contract remain the same.

novation

Which BEST describes an owner's equity in the property? The value over and above the ___ ___ ___

outstanding mortgage balance

__ ___ ___ -anything in writing (like the contract) takes precedence over verbal agreements.

parol evidence rule

legal descriptions in residential lots of less than 1 acre. This is called a __ __

plat map

What is the starting point in a Metes and Bounds description? __ ___ __

point of beginning (POB)

Easements can be terminated by: 1. The ____ of the easement no longer exists. (a new road is built, etc.) 2. The holder of the easement ___ it for a statutory time period. 3. A ____ of the properties occurs so an easement is not needed. 4. ____ of the property or the easement. (such as being at the bottom of a new dam filled with water.) 5. The owner of the easement issues a ___ ___ ___ back to the property owner that granted the easement. 6. ____ use occurs as determined by the courts

purpose abandons merger Destruction quit claim deed excessive

A legal description should be written so that "a ___ ____ ___ could find it."

reasonably competent surveyor

The purpose of a ___ ___ is to ensure that judgements against licensees will be collectable.

recovery fund

A form of "legal description" Arranged in a series of grids. Principal Meridians run North and South and Base lines run East and West. This is called ___ ___ ___

rectangular government survey

Foreclosure would terminate equitable right of ____

redemption

The term "commercial property" generally refers to ___, ___, and ___ properties

retail office industrial

A local government could stimulate the real estate market by expanding the __ system

sewer

The level of government which is most active in regulating real estate licensees is the ___ government

state

The ___ ___ ___ provides a time frame which court cases must be filed on certain offenses. If the ___ __ ___ runs out, the case cannot be heard.

statute of limitations

If a sale contract indicates that the day of closing is "__ ___ ___," this means that the seller must pay prorated expenses inclusive of the day of closing.

the sellers day

___ insurance and ___ fees are examples of closing items not prorated between the buyer and seller.

title inspection

___ contract- When only one person promises to do something, the other person pays the promiser "option money" to be able to hold that person to their promise.

unilateral