STUDY THESE 2

A seller sells her home to a buyer who purchases the property "subject to" the existing loan. If the buyer defaults, who is liable for the balance of the debt? Select one: a. Seller b. Buyer only c. Seller and buyer jointly d. Seller and buyer jointly and severally

a. Seller

A property sells for $150,000. The buyer will make a 20% down payment and pay the lender three points. How much will the buyer pay for points? Select one: a. $900. b. $3,600. c. $4,500. d. None of these choices.

b. $3,600.

Who holds the security in a deed of trust? Select one: a. The trustor. b. The mortgagor. c. The beneficiary. d. The trustee.

d. The trustee.

A man buys a house for $110,000. In the years following his purchase, the value of his house appreciates 45% and then decreases 11 1/2% below the high point. What is the current value of the house? Select one: a. $159,500. b. $183,420. c. $141,160. d. $145,750.

c. $141,160.

A rectangular lot with 1,250' of frontage contains 40 acres. The adjacent lot has a front footage of 2,000'. If both lots are the same depths, how many acres are in the second lot? Select one: a. 48. b. 56. c. 64. d. 72.

c. 64.

What is the legal process, used by the government, to acquire property from a private citizen? Select one: a. Eminent domain b. Escheat c. Condemnation d. Taxation

c. Condemnation

If an appraiser advises you "...this property suffers from incurable depreciation", what would he or she be describing? Select one: a. Physical obsolescence b. Functional obsolescence c. Economic obsolescence d. Generic obsolescence

c. Economic obsolescence

The Fair Housing laws do Act does NOT provide protection on the basis of: Select one: a. Gender b. Handicapped c. Homosexuality d. Single parenthood

c. Homosexuality

How would an appraiser normally appraise an office building? Select one: a. Abstraction. b. Cost. c. Income. d. Market Data.

c. Income.

Which legal instrument is used to convey a tenancy for years from one person to another? Select one: a. Deed. b. Land contract. c. Lease. d. Purchase contract.

c. Lease.

A developer of commercial property is required to provide for off-street parking for tenants. This is an example of: Select one: a. Eminent domain b. Taxation c. Police power d. Escheat

c. Police power

A house sells for $54,000 and is assessed at $39,400. Annual taxes are calculated at $0.92 per $100 and are paid every 6 months. What is the semi-annual tax bill? Select one: a. $496.80 b. $363.40 c. $248.40 d. $181.24

d. $181.24

A settlement agent is responsible for paying which of the following? Select one: a. Balance due on the seller's mortgage b. Title insurance premium c. Costs of recording d. All of the above

d. All of the above

How can a broker best demonstrate his compliance with Fair Housing laws? Select one: a. Display the Equal Housing Opportunity Poster in the office and all places of business b. Document all transactions with all clients or customers c. By showing all prospective buyers all property for which they are financially qualified d. All of the above

d. All of the above

What does an appraiser do FIRST, when given an assignment to appraise real property? Select one: a. Prepares the reconciliation b. Does a correlation study c. Inspects the property d. Defines the problem

d. Defines the problem

The ownership of unities of time, title, interest, and possession are required in order to create: Select one: a. An undivided interest in the property as a whole. b. Separate ownership. c. Concurrent ownership. d. The right of survivorship.

d. The right of survivorship.

A condensed history or summary of the documents affecting a property is: Select one: a. An abstract of title b. The chain of title c. An affidavit of title d. An abstract of judgments

a. An abstract of title

What type of ownership always allows for the transfer of title to real property by a will? Select one: a. Fee simple. b. Life estate. c. Tenancy by the entireties. d. An estate for years.

a. Fee simple.

Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the accrued interest and to whom was it paid? Select one: a. Lending Institution $259.58 b. Lending Institution $256.03 c. Emma $17.31 d. Emma $268.23

a. Lending Institution $259.58

Which contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land? Select one: a. Metes and bounds. b. Rectangular survey. c. Subdivision lot and block. d. Government survey.

a. Metes and bounds.

Sophie, a licensed salesperson, works for a broker who is representing a buyer. Sophie finds a house for the buyer and the transaction closes. Sophie will receive her commission from which of the following? Select one: a. The broker that holds her license b. The broker that listed the house that Sophie sold c. The settlement attorney handling the closing d. The buyer, per his or her agreement with Sophie

a. The broker that holds her license

A joint tenant wants to sell his interest in a real property without the consent of the other joint tenants. Can he do this? Select one: a. Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants. b. Yes, because survivorship is present in joint tenancy. c. No, because a single property titled in joint tenancy requires all co-owners to act together. d. No, because the unity of interest in joint tenancy demands that all co-owners act together.

a. Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants.

Which type of listing agreement allows the seller to sell his property and NOT have to pay a commission, but assures the broker a commission if anyone else, other than the owner, sells the property? Select one: a. An open listing b. An exclusive agency listing c. A special listing d. An exclusive right-to-sell listing

b. An exclusive agency listing

John Doe is trying to rent one bedroom in his house. An Hispanic applies and is told by the owner (Doe), "I will only rent to a Caucasian." Which law has John violated, if any? Select one: a. 1968 Fair Housing Law. b. Civil Rights Act of 1866. c. Civil Rights Act of 1964. d. There is no violation, as owner John Doe is exempt from the law.

b. Civil Rights Act of 1866.

The amount of a broker's commission is: Select one: a. Based upon standard rates established in the area. b. Established by agreement between the broker and the seller/buyer. c. Established by the real estate board. d. 6% or 7%, depending on the area.

b. Established by agreement between the broker and the seller/buyer.

The maximum interest rate that can be charged for a home mortgage is determined by which of the following? Select one: a. FDIC. b. State usury laws. c. Federal Home Loan Bank Board. d. Federal Reserve.

b. State usury laws.

A buyer purchased a property from a seller and assumed the seller's loan. The seller wanted to be released from liability on the loan. Which of the following would accomplish this for the seller? Select one: a. The seller would have to sign a release of liability b. The lender would have to sign a release of liability c. The seller would need to note the release of liability in the sales contract d. The buyer would have to sign a release of liability

b. The lender would have to sign a release of liability