Real Estate U - Exam Answers (Part 1)

Which of the following could file a mechanic's lien?

All of the answers: Plumber Electrician Architect

How can a tenant in common transfer his or her share of real property?

By executing a deed of transfer or leaving the property to someone else in a Will or another testamentary device

The income method is commonly used to assess what property types?

Commercial properties

Life estates are generally created by a...?

Deed

Which of the following does not have the authority to tax real estate?

The Federal government

f a property owner doesn't pay their property taxes, what will happen?

There may be a forced sale of the property The property may be foreclosed on A lien may be placed on the property

How long does an easement last?

They run with the land, so they transfer with the property

In most cases, encroachments are...?

Unintentional

With only a few exceptions, structures built with only wood have a maximum height of...?

2 floors

If a building totals 5,000 square feet, and the building covers 100% of the property, what is the floor area ratio if the property measures 1,000 square feet?

5

John is looking for an existing multi-story building zoned for mixed-use. He wants to open a small, by-reservation-only restaurant on the lowest floor. Local code requires 15 square feet per person in a commercial setting with non-concentrated seating. What is the minimum square footage he needs to serve 50 people?

750 sq.ft.

Which of the following is NOT a legal homestead exemption in the State of Washington?

A Double Principal Exemption for married couples.

Which of the following entities cannot exercise eminent domain powers?

A business owner wanting to expand their store

What is a special assessment tax?

A tax levied on property owners to raise additional revenue.

What is one thing that privately-imposed land-use regulations and restrictions CANNOT do?

Abolish or negate state and municipal zoning requirements.

Which of the following yard requirements may be found in the local zoning ordinances?

All of the answer choices provided are correct Front yard requirements Rear yard requirements Side yard requirements

Sustainability measures aren't only about green initiatives that reduce the carbon footprint by encouraging renewable energy consumption. City planners may periodically review...?

All of the answer choices provided are correct Transportation services Local food production Programs that support civic engagement

Juan asks Teresa to help him sell his house. Juan finds a buyer. At the closing, Teresa receives a commission check. What type of listing agreement did Juan make?

An exclusive right to sell listing

............ is when a court orders a person to do or not do a certain action.

An injunction

Which of the following could be structured as a cooperative?

Apartment-style building

Which of the following could be structured as a condominium?

Apartment-style building Single-family homes Townhouses

Which one of these is not a reason someone might consider cooperative living?

Apartment-style living with deeded, fee-simple ownership

How does the State of Washington express property tax rates?

As a dollar amount per $1000 (Dollars).

Which of the following words would probably not indicate a fee simple determinable estate?

Because

What are the people who will inherit property and other assets held in trust called?

Beneficiaries

Which of the following are cooperative residents usually responsible for?

Both their own utility costs and maintaining the interior of their individual units.

Fire stairs in a building will typically exit to the...?

Building's lobby

Each of these could be considered an encroachment, except...?

Cement patio that extends up to the property line

What evidences a cooperative resident's ownership rights for their unit?

Certificate for shares of stock in the Co-op corporation

Which document signifies a building is ready for habitation or commercial use?

Certificate of occupancy

Deed restrictions can be identified by...?

Conducting a title search

Three universal control metrics in building codes are...?

Construction type, occupancy type, and building supplies and materials.

Rebekah is a real estate broker preselling tracts in a subdivision. She has a client who wants to buy an improved lot to establish an assisted living home that will accommodate four live-in-resident-clients. Which subdivision regulations does Rebekah review with her client before making a formal offer?

Developer restrictions and local zoning ordinances

The property that benefits from an easement appurtenant is called the...?

Dominant estate

Property owners can avoid an escheat situation through which of the following ways?

Establish a trust to hold real estate Naming beneficiaries in a will Filing a beneficiary deed or transfer on death deed

The local tax assessor is responsible for which of the following?

Establishing assessed values

An estate that will end automatically when the stated event or condition occurs is known as a/an...?

Fee simple determinable estate

An estate that is unqualified, of indefinite duration, freely transferable and inheritable is known as a/an...?

Fee simple estate

In order to remove a deed restriction, a homeowner would need to...?

Go to court for a judge's ruling.

In a life estate, the .............grants the property to a life tenant.

Grantor

Condominiums are usually managed by a...?

Homeowners' association

When an owner of property held as joint tenants with rights of survivorship dies, what happens to the deceased owner's share?

It passes automatically to the remaining joint owner(s)

When are properties assessed for tax purposes?

It varies, but generally is annually

What is the millage rate?

It's the same as the tax rate

Which of the following is not required for a prescriptive easement?

Lack of use of the land

What does first in time, first in right mean?

Liens are prioritized based on the order in which they were recorded.

The person who retains the life estate interest is called the?

Life tenant

What types of property taxes are homeowners likely to pay?

Local government, county, and school district related taxes

An industrial zone may also be classified as a/an...?

Manufacturing zone

In some states, when one spouse owns real estate in severalty, the other spouse will be required to sign deeds or other conveyances affecting the property, because of their marital status. What is the interest the spouse, whose name is not on the title, commonly referred to?

Marital interest

What is another common term for the "Declaration of Condominium" the developer files with the county?

Master deed

Proposed developments must follow standards in the established municipal or county master plan; however,...?

Master plans may be modified under some circumstances.

The ............. helped the insurance industry develop a survey for municipalities to establish building guidelines in the early 20th century.

National Board of Fire Underwriters (NBFU)

Housing inventory has reached a ten year low, primarily because a new plant in a nearby town brought in hundreds of workers from other parts of the state. City leaders are considering an application for a new subdivision development that would increase housing options. This is an example of ............, triggering change to the master plan.

Net migration

Are special assessments usually tax-deductible?

Not usually. Property owners already enjoy a direct benefit.

Which one of the following best describes "ownership in severalty"?

One person owns all of the rights that come with owning real estate.

When a buyer of a condominium unit receives a Resale Package to review, which of the following would NOT be included in this Resale Package?

Ongoing legal action against condominium unit owners

What can a property owner do to remove a property tax lien from the title to their property?

Pay the delinquent property tax bill plus interest and fees.

A court may create this type of easement if an encroachment was open, notorious, hostile, and continuous for a period of years?

Prescriptive easement

Property taxes fund all of the following, except...?

Private schools

As a general rule of thumb, which of the following types of liens tend to take priority over other liens?

Property tax liens, special tax assessment liens, and some homeowners' association liens.

............ is when the court interprets a poorly written contract to find the parties' intentions and issues an order clarifying the parties' respective obligations under the contract.

Reformation

............ is when the court places the parties in the same position they were prior to making the contract and discharges the contract.

Rescission

Single-family homes are found in .................zones.

Residential

Subdivision regulations are generally created and enforced by local, state, and federal agencies. However, developers may choose to add ............ that influence landscaping and architectural design, choices, as well as limit certain activities within the community borders to shape the tone and appearance of the subdivision.

Restrictive covenants

Which of the following is not a type of deed restriction?

Reversion, (convenant, condition, restriction)

Why might someone want to create a land trust to hold real estate?

Safeguard the owner's privacy Protect real estate from liens Protect real estate from homeowner's association claims

The power to escheat real property rests solely with...?

State governments

Phillip and Mandy make a contract. Mandy breaches. Phillip waits 7 years to sue on the contract. He loses, and the judge rules in Mandy's favor. What is the most likely reason for his loss?

Statute of limitations

Mark is a local real estate developer who is looking to create a subdivision. What is the first step Mark must take in the subdivision process?

Survey the land

What is the first step a developer must take when creating a subdivision?

Survey the land

If a property owner doesn't pay income taxes, what type of lien might be filed against the taxpayer's home or business?

Tax lien

Student dorms, nursing homes, and on-campus fraternity houses are considered...?

Temporary housing

In a landmark decision from 1946, how did the United States Supreme Court define "air space" above real property that is privately owned in the U.S. v. Causby case?

The Supreme Court concluded that ownership of land includes the lower altitudes that sit above private property.

Rent controls are a type of police power that limits...?

The amount a landlord can charge for rent

What things can change the tax rate from year to year?

The budget needs of the local taxing jurisdiction

If a contract contains a force majeure provision, and an accident destroys the object of the contract, which of the following is most likely to govern the discharge of the contract?

The force majeure provision

If you sell a property with multiple liens on the title, how are the lienholders satisfied?

The lienholders are paid off based on their order of priority.

A comprehensive plan may be modified to accommodate changes in...?

The local economy, social and cultural norms, or net migration.

What is the distinguishing feature of a joint tenancy?

The right of survivorship

What happens if there is a tax for the city and the school district?

The tax rate is equal to the city tax plus the school tax

Who controls and manages the homeowners' association (HOA) in a condominium, making critical decisions that impact each unit owner in a condominium?

The unit owners who have been elected to the condo board.

Which of the following is not a right that a fee simple property owner has?

There are no restrictions

What is the maximum time period a fee simple estate holder has rights over their property?

There is no time limit or fixed duration

What was the primary EPA objective in establishing the Clean Water State Revolving Fund?

To empower states to proactively manage water quality.

Who is the person who holds nominal title of assets held inside of a trust?

Trustee

The authorization to improve or develop a particular property in a manner not authorized by zoning is known as a/an...?

Variance

When should a property owner challenge an assessed value?

When he or she can back up the value of the home in another way

Can the assessed value change significantly year-to-year?

Yes, if there are changes to the area surrounding the property or the condition of the property

Bill built a new deck that extends over his neighbor's lawn. Bill did not know that he was crossing the property line when he built the deck. Is this an encroachment?

Yes. It does not matter whether or not the encroachment was intentional.

Every development must comply with local ordinances. Which agency/official typically sets per-capita parking space requirements?

Zoning Office

Maps that indicate the location and boundaries of zoning districts within a municipality are known as...?

Zoning maps

The zone for a particular property will be located on the local...?

Zoning maps

In ............ agreement, a real estate agent does not need to worry about competition from other agents.

an exclusive right to sell listing

In ............, a real estate agent is certain to receive a commission if a closing occurs.

an exclusive right to sell listing

A complete contract that has been reduced to writing is...?

an express contract

The worst way to discharge a contract is...?

breach

If a property owner who just decided to live with a neighbor's encroachment later decides to sell their house, they must...?

fully disclose the encroachment to potential buyers

When a new property owner acquires land subject to an easement, they will also acquire the rights or limitations of that easement. The phrase that describes this best is: Easements...?

run with the land

What is it called when a tenant once had the right to live in a property, but they remain there after the lease expires without authorization?

tenancy at sufferance