National Exam Practice Test 9
Sandra retired from a career in the Navy and is ready to buy her first home, a small bungalow in a quiet neighborhood, for $169,900. Her military service gives her the benefit of Veterans Affairs (VA) loan. What's her required down payment? A) $0 B) $1,699 C) $2,548.50 D) $500
A) $0
If you sell a home for $143,000, and your commission rate is 5%, what is your commission on the sale of this home? A) $7,150 B) $7,500 C) $8,580 D) $9,440
A) $7,150
Jenna was surprised that the charming Tudor she was touring was still on the market. "I don't see anything bad on the disclosure," she told her agent, "and the price seems fine. Why do you think it hasn't sold?" Her agent Louise responded, "Well, I heard that UPS was opening a new air hub two miles away early next year." Why might this affect Jenna's or other buyers' interest in the property? A) A UPS hub would mean many more flights overhead each day. B) More UPS jobs would mean more housing competition. C) The city might raise property taxes once UPS moves in. D) With a UPS hub nearby, packages would be delivered more quickly.
A) A UPS hub would mean many more flights overhead each day.
Frontage (or front foot) refers to what? A) A property's boundary line that's adjacent to a road or waterway B) A property's cost per foot C) A property's depth (from the front to the rear) D) A property's perimeter
A) A property's boundary line that's adjacent to a road or waterway
Which of these statements about the size of a section of land is NOT true? A) A section is 43,560 square feet. B) A section is 640 acres. C) A section is larger than a hectare. D) A section is one square mile.
A) A section is 43,560 square feet.
Eric didn't have direct access to the small lake in his subdivision; he had an easement arranged with his neighbor. Ten months ago, the developer built a public access road to the lake, so Eric stopped using the easement. What type of easement termination is this? A) Abandonment B) Express C) Merger D) Necessity
A) Abandonment
Which of the following is an example of the duty of reasonable skill and care? A) Advising clients to seek expert advice on matters outside of your expertise B) Carrying out a client's instructions without question C) Keeping a client's confidential information confidential D) Sending the client daily email updates on all that is happening with the transaction
A) Advising clients to seek expert advice on matters outside of your expertise
Simon is looking for a facility for a large grocery distribution operation. He found two options, one of which is offering him a triple net lease, and the other an absolute net lease. Why is his attorney arguing against the latter? A) An absolute net lease has no legal defenses if Simon fails to pay. B) An absolute net lease will cost more in the long run. C) Simon will still be responsible for insurance in an absolute net lease. D) Simon will still be responsible for taxes with an absolute net lease.
A) An absolute net lease has no legal defenses if Simon fails to pay.
Which of the following would a home inspector note as a defect in a report due to its link to lung cancer? A) Asbestos tiles in a basement B) Cedar shake siding C) Copper water pipes D) Old linoleum tiles in a kitchen
A) Asbestos tiles in a basement
What type of value is of interest to taxing authorities? A) Assessed value B) Insured value C) Investment value D) Value in use
A) Assessed value
You represent a buyer in a transaction that includes a 2% cooperating agent commission to be paid by the seller. Who's your client? A) Buyer B) Seller C) Seller's agent D) Seller's sub-agent
A) Buyer
SARA is an amendment to which environmental act? A) CERCLA B) Clean Air Act C) Clean Water Act D) Environmental Responsibility Act
A) CERCLA
When prices go down because there are too many homes on the market and too few buyers, what economic principle is at work? A) Competition B) Conformity C) Progression D) Regression
A) Competition
Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________. A) Comprehensive plan B) Economic development plan C) Health and sanitation ordinances D) Zoning ordinances
A) Comprehensive plan
What type of loan is neither guaranteed nor insured by government agencies? A) Conventional B) Federal Housing Administration (FHA) C) U.S. Department of Agriculture (USDA) D) U.S. Department of Veterans Affairs (VA)
A) Conventional
The Amarals are purchasing the house of their dreams and have plans to stay in it for at least the next three decades while they pay back their conventional 30-year loan. Their primary focus, over the life of the loan, is to reduce their payments as much as possible. What is something that could help them achieve this? A) Discount points B) Gap financing C) Usury D) Wrap-around loan
A) Discount points
Fewer buyers in a higher price range would create what kind of pressure on housing prices? A) Downward B) Steady C) Strong D) Upward
A) Downward
If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do? A) File a claim for inverse condemnation. B) Require a zoning change to their own property. C) Sell at a loss and file a claim. D) Sue their neighbors.
A) File a claim for inverse condemnation.
Gladys and her husband, Ralph, owned their home as joint tenants. After Ralph died, Gladys owned the home in severalty. When she dies, which of these will happen to her home? A) Her heirs, as described in her will or according to state law, will receive the property. B) Her home will transfer automatically to a co-owner. C) The property will have no owner and must be sold at auction. D) The property will revert to a remainderman.
A) Her heirs, as described in her will or according to state law, will receive the property.
Jordan works as a property manager for several residential property owners. When she receives security deposits from tenants, how long does she have to deposit them into an escrow account? A) It depends on her state's requirements. B) She has seven business days. C) She has three business days. D) There is no deadline.
A) It depends on her state's requirements.
Tom and Rosanne are interested in a property, but before making an offer, they want to make sure there aren't any registered sex offenders living in the neighborhood. Which statement is most accurate? A) It's up to the buyer to perform due diligence and research whether sex offenders live in the area. Licensees can direct clients to the state's registry. B) Sex offender information is not public, and a seller is not required to disclose it. C) The licensee must research the neighborhood to determine if there are any registered sex offenders. D) The seller must disclose the location of any nearby sex offenders.
A) It's up to the buyer to perform due diligence and research whether sex offenders live in the area. Licensees can direct clients to the state's registry.
Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this? A) Lot and block B) Metes and bounds C) Monument and benchmark D) Rectangular government survey
A) Lot and block
When a contract doesn't provide specific dates for when the terms need to be met, what should the parties assume regarding performance of the contract? A) Performance must take place within a "reasonable time." B) The contract will be complete when all of the parties have met their obligations and not before. C) The courts will decide if the parties have met their respective contractual obligations. D) This contract provides an opportunity to sue for breach of contract.
A) Performance must take place within a "reasonable time."
Which of these statements most accurately represents existing federal antitrust legislation? A) The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly. B) The Federal Trade Commission Act established the Sherman and Clayton acts to prevent collusive activities that limit competition. C) The Federal Trade Commission Act prevents one large firm from acquiring another similar firm that would result in a restraint of trade. D) The Sherman Antitrust Act was passed to supplement the Clayton Act in an effort to prevent mergers that create monopolies.
A) The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly.
Xavier deposited a $3,000 earnest money check into his personal account for safekeeping while he was on vacation. The balance in his account when he left on vacation was $4,200, and when he returned, it was $2,800. He withdrew enough funds from his savings account to cover the earnest money check and delivered the funds to the escrow agent. Which statement best represents Xavier's issue? A) Xavier is guilty of commingling and conversion. B) Xavier is guilty of commingling only. C) Xavier is guilty of conversion only. D) Xavier is guilty of theft.
A) Xavier is guilty of commingling and conversion.
Your seller client has an offer for $300,000. If the agreed-upon commission is 5%, what is net to seller before any other costs are taken into account? A) $280,000 B) $285,000 C) $290,000 D) $295,000
B $285,000
A strip mall valued at $850,000 has a $67,500 annual net operating income. What is the capitalization rate for the strip mall? A) 12.59% B) 7.9% C) 8.67% D) 9.2%
B) 7.9%
Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it's going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the deed to the land. What kind of state does Sondra live in? A) A deed of trust theory state B) A lien theory state C) An intermediary theory state D) A title theory state
B) A lien theory state
Rennie owns a 240-foot by 130-foot lot. How do you calculate the perimeter? A) Add the length and width and divide by two. B) Add two times the length to two times the width. C) Multiply 240 by 130. D) Multiply 240 by 130, then multiply by two.
B) Add two times the length to two times the width.
Camille, a buyer, wants to change the price already agreed to in a sales contract. What document should she use? A) Addendum B) Amendment C) Bill of sale D) New contract
B) Amendment
Which of the following is an example of single agency? A) A broker acts as a dual agent to one party only. B) An agent from one firm acts as the agent for the buyer. C) Two agents from different firms each act as a sub-agent for the other. D) Two agents from one firm act separately, with one agent representing the buyer and the other representing the seller.
B) An agent from one firm acts as the agent for the buyer.
Connor was the seller and Duke was the buyer when Connor sold his property. Who conveyed the title? A) Connor, as grantee B) Connor, as grantor C) Duke, as grantor D) The title clerk for the county in which the property is located
B) Connor, as grantor
Which of the following is an example of a universal agent? A) Buyer's agent B) Conservator C) Escrow officer D) Listing agent
B) Conservator
Which of these situations represents the illegal practice of blockbusting? A) Celia, a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of those neighborhoods will increase property values. B) Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values. C) Estelle, a broker, warns potential clients about the upcoming zoning change in a neighborhood that is currently zoned as residential. D) Kian, a mortgage broker, refuses to underwrite mortgage applications from applicants who are Hispanic or Asian.
B) Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values.
Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title? A) As long as the chain of title is traceable for at least the past 30 years, Mario will have marketable title. B) Depending on his state's laws, Mario may have marketable title. C) Mario will have to perform his own research to find information necessary for repairing the broken link. D) Unless the chain of title can be tracked back to its beginning, Mario won't have marketable title.
B) Depending on his state's laws, Mario may have marketable title.
Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so? A) Disposition B) Enjoyment C) Exclusion D) Possession
B) Enjoyment
The Arbor Heights community passed a zoning ordinance that requires group homes designated for disabled citizens to be situated outside of city limits. This is a violation of the ______. A) City Charter Act B) Fair Housing Act C) Municipality Zoning Act D) Zoning Disability Act
B) Fair Housing Act
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law? A) Civil Rights Act of 1866 B) Fair Housing Amendments Act of 1988 C) Federal Fair Housing Act of 1968 D) Housing and Community Development Act of 1974
B) Fair Housing Amendments Act of 1988
The Swansons left the family property to their son, Jason, with the stipulation that he does not build on it. The type of estate Jason holds is ______. A) Fee simple absolute B) Fee simple defeasible C) Leasehold D) Qualified lease
B) Fee simple defeasible
Which statement accurately describes an abstract of title? A) A title company representative must certify the abstract of title. B) Few states require an abstract of title when conveying property. C) The chain of title documents the information found during the title abstract process. D) Title abstracts provide data for the title company's title search.
B) Few states require an abstract of title when conveying property.
Business is booming for Johnstone Realty, a new brokerage firm in town. The other firms in the area are unhappy about the cooperating split Johnstone offers, and they all agree to not show Johnstone's listings to their buyer clients. What is this an example of? A) Blockbusting B) Group boycotting C) Market allocation D) Steering
B) Group boycotting
When appraisers look past how a property is being used to determine a more optimal function, what are they determining? A) Cost to replace B) Highest and best use C) Market value D) Value in use
B) Highest and best use
Which approach to value is typically used for investment property of two- to four-family units? A) Cost approach B) Income approach C) Revenue approach D) Sales comparison approach
B) Income approach
Dean's new business venture is a software services firm where IT professionals handle programming and customer service tasks for a number of business clients. His employees all work at tables in an open office space. Dean most likely has a _______ lease for the office space. A) Gross B) Loft C) Percentage D) Triple net
B) Loft
While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching? A) Accounting B) Loyalty C) Obedience D) Reasonable skill and care
B) Loyalty
Robert is the general contractor for a home being constructed in a new development. The foundation has been poured, and he's working with the homeowners to make some decisions that weren't identified in the blueprints he's working from. Which of the following details are guided by local building codes? A) Material used for shingles B) Number and type of electrical breakers C) Number and type of windows per square foot D) Placement of gas range in the kitchen
B) Number and type of electrical breakers
Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? A) Complete a loan application. B) Obtain a pre-qualification letter. C) Sign a purchase agreement. D) Write an offer.
B) Obtain a pre-qualification letter.
Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation? A) Inform the buyer that he represents the seller. B) Obtain dual agency consent from all parties. C) Obtain dual agency consent from the buyer. D) Obtain dual agency consent from the seller.
B) Obtain dual agency consent from all parties.
Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare? A) Allow a friend to use his week. B) Pass the timeshare on to an heir. C) Purchase an additional week if it becomes available. D) Try to exchange weeks with another timeshare holder.
B) Pass the timeshare on to an heir.
What does the lot and block system use to develop a property's legal description? A) Compass headings and directions B) Plat references C) Principal meridians and base lines D) Townships and sections
B) Plat references
The fewer properties on the market, the greater the scarcity. What's the effect on prices? A) Prices are pushed downward. B) Prices are pushed upward. C) Prices remain the same. D) There's no correlation between scarcity and price.
B) Prices are pushed upward.
The federal Government in the Sunshine Act is part of what? A) The first amendment B) The Freedom of Information Act C) The Sarbanes-Oxley Act D) The SPEECH Act
B) The Freedom of Information Act
Under which of the following circumstances would the client and agent most likely mutually agree to terminate a listing? A) A buyer approached the seller with a much higher offer than the current listing price. B) The agent and client don't agree on the best way to price, maintain, and market the property. C) The client has found a buyer and wants to avoid paying a commission. D) The client's cousin just became licensed and needs her first listing.
B) The agent and client don't agree on the best way to price, maintain, and market the property.
Which of the following statements is true regarding timeshare estates? A) Timeshare estates are illegal. B) Timeshare estates can be sold or passed down to heirs. C) Timeshare estates cannot be passed down to heirs. D) Timeshare estates cannot be sold.
B) Timeshare estates can be sold or passed down to heirs.
The Walton family got a great deal on their new home. They bought it for $101,295, and it appraised at $187,000 in a region where assessed value is a percentage of appraised value. Using an assessment ratio of 25%, what is the assessed value of their new home? A) $21,246 B) $25,323 C) $46,750 D) $52,753
C) $46,750
When using the MARIA acronym to test whether an item is a fixture, what do the two As stand for? A) Acceptability of the fixture and agreement of the parties B) Adaptability of item and accessibility to the property C) Adaptability of item to land's use and agreement of the parties D) Allowable use and acceptable use
C) Adaptability of item to land's use and agreement of the parties
Sue is selling her house for $265,000. Closing is set for June 19, and Sue owns the day of closing. She has a loan balance of $78,000 at a 4.2% rate, and she's current on her payments. She prepaid the property taxes ($1,350) and insurance ($925). Using a calendar-year proration method for calculations, how will these amounts appear on Sue's closing statement? A) Credit of $1,059.10 B) Credit of $1,350 and debit of $484.04 C) Credit of $721.50 D) Debit of $1,214.85
C) Credit of $721.50
Property owner Craig likes to sunbathe in the nude in his nice, private backyard. What part of the bundle of rights allows him to do this legally? A) Control B) Disposition C) Enjoyment D) Exclusion
C) Enjoyment
Natalie is a single mother of twins and receives government assistance to help make ends meet. She's been living with her mother for the last few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie? A) Community Reinvestment Act B) Consumer Credit Protection Act C) Equal Credit Opportunity Act D) Home Mortgage Disclosure Act
C) Equal Credit Opportunity Act
While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was "fully protected" and would get her earnest money back if the sale didn't close. He encouraged her to hire an attorney to review the contract and addendum, and then invoiced her for a nominal $15 fee to prepare transaction documents. Which of the following tasks was Jeffrey legally permitted to do? A) Charge a fee for preparing legal documents B) Draft the early occupancy addendum C) Fill in the contract blanks D) Interpret the contract provisions regarding the buyer's full protection and getting her earnest money returned
C) Fill in the contract blanks
Nathan was painting the siding on his home when he was interrupted by a neighbor who informed him that he had to have the paint color approved before using it. Nathan lives in a neighborhood with ________. A) Conditions B) Environmental regulations C) HOA regulations D) Police power
C) HOA regulations
What's the purpose of a firewall? A) It backs up your files to an external hard drive. B) It encrypts your email. C) It prevents hackers from infecting your system with viruses, worms, and malware. D) It stores logins and passwords.
C) It prevents hackers from infecting your system with viruses, worms, and malware.
It's 12,280 feet from Missy's house to the nearest coffee shop. Approximately how far is this? A) Just over a mile B) Just over half a mile C) Just over two miles D) Just under a mile
C) Just over two miles
What is the federal program that was created to help mitigate future flood losses across the country? A) Federal Flood Loss Prevention Program (FFLPP) B) Federal Flood Loss Program (FFLP) C) National Flood Insurance Program (NFIP) D) National Flood Mitigation Fund (NFMF)
C) National Flood Insurance Program (NFIP)
What are the main benefits to veterans of the VA-guaranteed loan program? A) A VA guarantee of the property condition B) Lower interest rates than are available on the open market C) No down payment, no mortgage insurance, and no prepayment penalty D) Reduced homeowner's insurance requirements
C) No down payment, no mortgage insurance, and no prepayment penalty
James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay a commission to the agent who located a buyer. This type of listing agreement is called ______. A) Exclusive agency B) Exclusive right to sell C) Open D) Seller's choice
C) Open
According to the Department of Justice, an agreement between competitors to establish or adhere to uniform price discounts is a type of which antitrust violation? A) Group boycotting B) Market allocation C) Price fixing D) Tie-in arrangement
C) Price fixing
What does PITI stand for? A) Price, information, trust, interest B) Price, interest, taxes, insurance C) Principal, interest, taxes, insurance D) Public Insurance Trust Information
C) Principal, interest, taxes, insurance
What classification of water rights includes the two smaller sub-classifications of navigable and non-navigable waterways? A) Groundwater B) Littoral C) Riparian D) The doctrine of appropriation
C) Riparian
Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______. A) Accepting partial performance B) Rescinding the contract unilaterally C) Suing for damages and breach of contract D) Suing for specific performance
C) Suing for damages and breach of contract
This act added familial status and disability (both physical and mental) to the existing federally protected classes. A) The Civil Rights Act of 1866 B) The Equal Credit and Opportunity Act of 1974 C) The Fair Housing Amendment Act D) The Housing and Community Development Act of 1974
C) The Fair Housing Amendment Act
Your buyer Clint loves older homes and wants to make an offer on a beautiful Craftsman. He doesn't like the yellow brick and has plans to paint it a lovely Williamsburg blue. You tell him that he may not be able to change the color or, even if he can, he may have to get the color approved first. What did you see on the property disclosure form that hinted at this? A) The house borders a wetlands. B) The house has a tax abatement. C) The house is in a historic preservation district. D) The house was built prior to 1978.
C) The house is in a historic preservation district.
Which of the following is a planning and zoning issue that most prospective buyers might need to know? A) How many members are on the zoning board B) How to get a home occupation permit C) The zoning designation for the given property D) When the town comprehensive plan will be updated
C) The zoning designation for the given property
Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership. What can reassure her? A) Abstract of title B) Chain of title C) Title insurance D) Title search
C) Title insurance
Clint is interested in making an offer on a house with hardwood floors that will need to be replaced. The hallway is 18 feet by 6 feet. The kitchen is 20 feet by 30 feet. The living room is 25 feet by 45 feet. There are two bedrooms, which measure 12 feet by 16 feet each, plus a master bedroom that is 14 feet by 20 feet. If the cost of the flooring is $5.48 per square foot, and the cost of installation is $1.49 per square foot, how much can Clint plan to spend to replace the floors? A) $13,683.56 B) $16,065.85 C) $16,309.80 D) $17,404.09
D) $17,404.09 **First, find the area of each room and add them together to get the total square footage. 108 + 600 + 1,125 + 192 + 192 + 280 = 2,497 square feet. The total cost of the flooring per sq. ft. is $5.48 + $1.49 = $6.97. So 2,497 × $6.97 = $17, 404.09.
Your buyer client, Max, just signed a purchase agreement for a $520,000 home. He has a 60% LTV ratio, and his lender's charging a 1.5% loan origination fee. What loan origination fee can Max expect to pay at closing? A) $2,200 B) $3,120 C) $4,200 D) $4,680
D) $4,680
The assessed value for your buyer clients' new purchase is $209,000. They feel they got a great deal since they're purchasing the property for $175,000. They've asked you to estimate their monthly property taxes. You know the rate for their jurisdiction is .52%. What is the monthly tax amount your clients owe? A) $101.12 B) $121.98 C) $75.83 D) $90.57
D) $90.57 ** Multiply the assessed value by the tax rate and divide by 12 to calculate monthly taxes: $209,000 × .52% = $1,086.80, and $1,086.80 ÷ 12 = $90.57.
Municipality XYZ created a document that regulates the permitted land uses and zoning classifications within the town boundaries, and does so while staying within the parameters of the comprehensive plan. Municipality XYZ has created _______. A) An environmental impact statement B) A SEQRA document C) A TDR document D) A zoning ordinance
D) A zoning ordinance
What's the role of the mortgage contingency in a sales contract? A) Describes seller financing options if the buyer isn't pre-qualified for a mortgage. B) Describes the lender and interest rates the buyer will use when purchasing the property. C) Documents the seller's credit rating and pre-approved purchase price. D) Documents the type of and timeline for financing, and outlines what to do if financing falls through.
D) Documents the type of and timeline for financing, and outlines what to do if financing falls through.
Which real property ownership right protects the owner from harassment or interference? A) Control B) Disposition C) Enjoyment D) Possession
D) Enjoyment
Joan and Martha are entering into an 18-month lease with landlord Roger. Which of these statements is true? A) All lease agreements must be in writing to be enforceable. B) An 18-month oral lease is enforceable. C) It's illegal for leases to cover terms of more than one year. D) Leases for periods of more than one year must be in writing.
D) Leases for periods of more than one year must be in writing.
The best way to start comparative market analysis data collection is to use properties that sold within which timeframe? A) 18 to 24 months ago B) Between two and three years ago C) In the last 12 to 18 months D) No later than three to six months ago
D) No later than three to six months ago
Tiers in the rectangular government survey system are formed by ______. A) Parallel baselines B) Parallel principal meridians C) Parallel range lines D) Parallel township lines
D) Parallel township lines
Kristin has been unable to make her mortgage payments. Her property went to auction but the lender didn't accept the high bid. What stage of the foreclosure process is this property now in? A) Eviction B) Foreclosure C) Pre-foreclosure D) Real estate-owned
D) Real estate-owned
Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management? A) Governmental B) Lot and block C) Metes and bounds D) Rectangular government survey
D) Rectangular government survey
Rhonda purchased an existing pet store in her neighborhood, and she's so excited! Her animal-loving aunt is thrilled for Rhonda but disappointed that she won't be able to visit the store in her wheelchair, as the aisles are narrow and there isn't enough room to move around. What is true about Rhonda's responsibilities to her aunt and other people with disabilities? A) At a minimum, Rhonda is required to add an accessible bathroom. B) At a minimum, Rhonda is required to add an accessible entrance to the building. C) Because Rhonda purchased a retail business, she must meet the same ADA requirements as new construction buildings. D) Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.
D) Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.
Margot has fallen in love with a three-bedroom, 2,500-square-foot property in her friend's neighborhood. It's listed for $400,000. However, just down the street, another three-bedroom, 2,400-square-foot home very similar to the one Margot loves was just listed for $350,000. Margot and her agent immediately make an offer on the second property. Which economic principle is at work here? A) Anticipation B) Conformity C) Progression D) Substitution
D) Substitution
Brent and Kathy recently bought a property in a gated community. While doing some landscaping they noticed that their neighbor's shed seems to be over the lot line and on their property. What should they consult to determine if the shed is an encroachment? A) Deed B) HOA covenant C) Mortgage D) Survey
D) Survey
All of the homes on Elm Street are currently on septic systems. However, the county plans to extend the sewer lines to Elm Street within the next two years. What's the biggest reason why it's important for your buyers to know this? A) Public sewers have a better safety record than septic systems. B) Sewer installation means construction traffic. C) Some people prefer septic systems to having to tie into public sewers. D) The county will likely impose an installation fee on Elm Street residents to cover the costs.
D) The county will likely impose an installation fee on Elm Street residents to cover the costs.
John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price for which other similar homes in the neighborhood are selling, and John accepts. What does the price of $365,000 represent? A) The appraised value B) The assessed value C) The investment value D) The market value
D) The market value
Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement? A) The taxes are an accrued expense, and will appear as a buyer credit and a seller debit. B) The taxes are an accrued expense, and will appear as a buyer debit and a seller credit. C) The taxes are a prepaid expense, and will appear as a buyer credit and a seller debit. D) The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.
D) The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.
Assuming licensee Shannon has actual knowledge of all of the following property issues, which of these issues should she disclose to prospective buyers? A) The nearby school system is one of the worst in the area. B) The neighbors like to throw a lot of parties. C) The tree in the front yard is at least 50 years old. D) The upstairs bathroom has a leaky toilet.
D) The upstairs bathroom has a leaky toilet.
Charlie rented a single-family residence from Hal and Mary. The lease specifies that Charlie can't conduct any type of business out of the property. Which clause includes this prohibition? A) The additional provisions clause B) The demising clause C) The prohibitions clause D) The use clause
D) The use clause
Developer A has a project planned that does not conform to the community zoning regulations and wants to make a change request. Which local land use group would the developer ask, and for what? A) The city council for a special use permit B) The planning board for a special use variance permit C) The town board for a variance D) The zoning board of appeals for a variance.
D) The zoning board of appeals for a variance.
Picture a drawing of a section of land. Where is Township 16 located? A) Fourth row, fourth from left B) Fourth row, third from left C) Third row, fourth from left D) Third row, third from left
D) Third row, third from left **Townships in a section are numbered beginning in the upper right (NE) corner and continue in a zigzag pattern.
What type of estate involves a piece of real estate that's owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one- to two-week intervals during the year? A) Apartment B) Leasehold C) Lifetime D) Timeshare
D) Timeshare
A town has just assigned a lower-density use zone to an area that previously allowed higher density. What's one reason the town may have done this? A) To improve property values B) To increase density in surrounding areas C) To increase taxes D) To limit overgrowth
D) To limit overgrowth
Because Shelby has a high prepayment penalty on her high-interest loan, she is ________. A) Able to pay off the loan early without penalty B) Able to refinance whenever she wants without incurring any penalties C) Eligible for additional tax deductions D) Unable to refinance her high-interest subprime loan without paying a stiff penalty
D) Unable to refinance her high-interest subprime loan without paying a stiff penalty
Which of these would be a breach of Margo's fiduciary duty of confidentiality? A) Margo told a potential buyer that the city council was considering rezoning the area around the property to commercial/light industrial. B) Margo told her seller client Troy the percentage commission split she gets from her broker. C) Under court order, Margo revealed conversations about the financial status of her previous client. D) When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.
D) When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.
Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______. A) A real estate licensee B) Unhappy with Scott's services C) Willing to find his own buyer D) Willing to pay Scott's commission anyway
D) Willing to pay Scott's commission anyway