Real Estate

Taxes were $1456 on a property that sold and then closed on April 5th. What would be the amount for the tax proration? a. 235 b. 314 c. 384 d. 1,072

$384

Two brothers own separate real estate companies, but agree to divide their received commissions equally. Broker A pays for three-fourths of the advertising costs and finds the buyer. Broker B pays for one-fourth of the advertising costs. If the total commission on the sale is $4,500, how much does Broker B receive? Select one: A. $1,125 B. $2,250 C. $4,500 D. None of the above

B

In a commercial property sale, what document would be used in conveying personal property, such as a detached refrigerator and stove?

Bill of sale

an owner of a residential property had planted a rose bush several years ago on the property. The owner then decided to sell her property. Regarding the rose bush she had planted, this would be considered:

Emblements

A person owns a particular house in fee simple. She deeds a life estate in that house to her uncle. She also deeds the remainder interest to her cousin. If her uncle dies, what estate does the cousin hold?

Fee simple estate

A lender tried to force a homeowner to sell her home to pay the lender for personal debts incurred by the homeowner. Which of the following could the homeowner claim to stop the sale of her home?

Homestead

Which of the following would NOT be an appurtenance?

Mortgage lien

Which of the following terms would best describe the concept that every piece of land is unique?

Non- Homogenous

Which of the following items would automatically transfer with the sale of the property?

Plumbing fixtures

An owner of a property built a free- standing bookshelf to fit in alcove in the basement. IF the owner were to sell the property, the bookshelf would be considered:

Real Property

A judgement had been issued against a person for debts. The person owned a car, boat, farmhouse and some land. Which of the following pieces of property could the judgement learn be placed upon?

The car, boat, farmhouse and land

Closing documents including bill of sale would signify which of the following?

The property was sold with personal property also included

Which of the following about mineral rights is true?

They are separate and divisible

When is an item considered to be real estate?

When it is permanently attached to the land

The main difference between a cooperative and condominium is that:

a condominium owner owns and finances their own unit

Which of the following statements would be the best definition of a fixture?

a physical attachment to the real estate

a seller sold their first property for $90,000 paying a 9.5% commission. The seller owed $20,000 on their first mortgage and carried back a second mortgage of $60,000 on behalf of the buyer. What would the seller net in this transaction? a. $1450 b. $61,450 c. $81,450 d. $90,000

a. $1450

Two brothers own a property 50/50. When one dies, the other brother gains full ownership. The term best used to describe this type of ownership is: a. joint tenancy b. tenants in common c. Tenancy in the entireties d. community property

a. Joint Tenancy

Which of the following types of encumbrances would involve the physical use of property? a. an easement b. a mortgage c. a lien d. a license

a. an easement

Which of the following items would be prorated at closing? a. annual real estate taxes b. earnest money c. inspection fees d. closing fee

a. annual real estate taxes

Property value for property taxes is determined by: a. assessment b. allocation c. allotment d. accumulation

a. assessment

An abandoned commercial or industrial site suspected of containing toxic waste would be called an: a. brownfield b. Greenfield c. grayfield d. blackfield

a. brownfield

in a federally regulated wetland area, the area between the wetlands and any building or development is called: a. a buffer zone b. condamnation c. a covenant d. a deed restriction

a. buffer zone

a person dies intestate. The property would pass according to: a. descent b. distribution c. adverse possession d. avulsion

a. descent

A trespass of an improvement is which of the following? a. encroachment b. easement c. license d. lien

a. encroachment

When a person has a lease for a definite period of time, this is called an estate: a. for years b. at sufferance c. at will d. periodic

a. for years

Which is a voluntary lien against a person's property? a. mortgage lien b. mechanic's lien c. judgement lien d. property tax lien

a. mortgage lien

which of the following terms would best be associated with the governing of flood maps? a. police power b. EPA c. eminent domain d. escheat

a. police power

What agency is charged with enforcing the clean water act? a. CFPB b. EPA c. CIA d. FDA

b. EPA

Which of the following statement would best describe a holdover tenant? a. a tenant who signs a lease renewal b. a tenant who stays past the least and expiration without permission c. a tenant who pays double rent because of the rent being late d. a tenant who exercised an option to purchase

b. a tenant who stays past the least and expiration without permission

The rules and regulations for a condominium owners are listed in the: a. bylaws and landlord tenant laws b. bylaws and charter c. Master Deed or Declaration d. Proprietary lease

b. b laws and charter

a rental property sold with a closing date of September 18th. The rent of $500 had been paid on September 1st. The buyer is credited with the day of closing. Which of the following statements is correct? a. buyer pays the seller $200 b. buyer pays the seller $217 c. Seller pays the buyer $200 d. Seller pays the buyer $217

b. buyer pays the seller $217

Earnest money on a closing statement is shown as: a. credit to the seller b. credit to the buyer c. charge to the buyer d. charge to the seller

b. credit to the buyer

What type of general risk insurance should a real estate licensee obtain if litigation is filed against the licensee for failure to perform or mistakes? a. general liability b. errors and omissions c. property insurance d. product liability

b. errors and omissions

G has a lease for one year. At the end of the year, G stays over without consent. This would be called an: a. estate for years b. estate at sufferance c. periodic tenancy d. estate at will

b. estate at sufferance

What is the purpose of recording a deed? a. signifies delivery and acceptance b. gives constructive notice c. guarantees the grantee clear title d. Guarantees that no lien exist on the property

b. gives notice

Under the 1997 tax relief act, a single person can exclude up to $250,000 of capital gains on the sale of an owner-occupied residence as long as the person: a. was 55years old or older b. had owned and lived in the property for 2 of the last 5 years c. person reinvests th profit in a more expensive property d. did no own more than 1 home at a time

b. had owned and lived in the property for 2 of the last 5 years

Which of the following legal descriptions uses a plat map? a. Metes and Bounds b. Lot and Block c. Geodetic survey d. Rectangular survey systems

b. lot and block

a property in a low-lying area with high humidity could be susceptible to which of the following problems? a. Radon Gas b. Mold c. Lead based Paint d. UFFI

b. mold

In a real estate transaction, when is the title insurance paid? a. monthly along with principle and taxes b. one time at closing c. one time at the signing of the sales transaction d. one time at the loan application

b. one time at closing

What is it called when radioactive gases naturally decay? a. UFFI b. radon gas c. mold d. Cardon Monoxide

b. radon gas

One year ago, a seller had work performed on their property. Currently, the seller sold the property to a buyer. Just before closing, it was discovered that there existed a judgment against the seller from the work that was done one year ago. Who would be responsible for this judgment lien? a. seller and buyer b. seller c. broker d. no one, as the judgement would have expired

b. seller

A tax assessment for the additional sidewalk In a neighborhood would be referred to as: a. ad valorem taxes b. special assessment taxes c. servitude d. encroachment

b. special assessment taxes

Unless stated otherwise , an unmarried couple buying property would take title as: a. joint tenants b. tenants in common c. tenancy in the entireties d. severalty

b. tenants in common

Which of the following is true about the Metes and Bounds description? a. it is no longer considered to be an accurate legal description b. the description must end by taking the last leg of the description back to the point of beginning c. the description cannot be used in states that use the rectangular survey system d. the last leg must intersect with a meridian or base line

b. the description must end by taking the last leg of the description back to the point of beginning

The right of a party to the use and occupancy of a property for a stipulated recurring period is known as: a. life estate b. timeshare c. cooperative d easement

b. time share

If a person gets injured while on the property of a real estate brokerage, what type of insurance would be needed by the real estate brokerage company to be protected? a. property insurance b. errors and omissions c. general liability d. business interruption

c general liability

How long must a licensee keep lead based paint records and contract information regarding a real estate transaction? a. 1 yr b. 2 yr c. 3 yr d. 5 yr

c. 3 years

A corporation purchases a piece of real estate. The Stockholders of not want to be personally liable on the loan used in connection with the purchase. In order for this to be accomplished, what document would be needed? a. a security agreement b. a deed of reconveyance c. a non- recourse agreement d. a satisfaction release

c. a non recourse agreement

Four parties take title to a property under tenancy-in-common. It is omitted on the deed what percentage of ownership each party has. Which of the following would be correct in this situation? a. all 4 parties would be considered to take title as joint tenants b. all 4 parties must be individuals, not corporate entities, to take title as tenants- in - common c. all 4 parties would be considered to have one- fourth ownership d. they cannot take title in this way without specifying ownership percentages on the deed

c. all 4 parties would be considered to have one- fourth ownership

Which of the following properties would an owner be able to depreciate for tax purposes? a. an owner occupies residence b. a second home used for vacation purposes c. an owner's past residence that is now rented out d. an owner's past rental home that is now owner occupied

c. an owner's past residence that is now rented out

construction plans are submitted to a municipality before a building permit is issued in order to: a. keep nonconforming uses apart b. keep others form building like properties c. determine if the building complies with local regulations d. determine if the owner has sufficient finances to complete the project

c. determine if the building complies with local regulations

A neighbor had encroached on a property but the owner did not complain within the legally specified time period. The neighbor would obtain rights to the land by: a. license b. easement be necessity c. easement by prescription d. easement in gross

c. easement by prescription

a person died intestate and had no heirs, thus resulting in the property being abandoned. Which of the following rights gives the state the right to take the property? a.eminent domain b. condemnation c. escheat d. police power

c. escheat

A material that was used prior to 1978 that becomes hazardous if friable would be: a. radon gas b. asbestos c. lead based paint d. UFFI

c. lead based paint

What is a schedule of exceptions in a title policy: a. encumbrances b. tax liens c. lists of things not insured in the policy d. defects

c. lists of things not insured in the policy

A developer wants to develop a new subdivision of homes in the suburbs surrounding a major city. What type of legal description would most likely be used? a. rectangular survey system b. metes and bounds c. lock and block d. geodetic survey system

c. lot and block

Which of the following would title insurance cover in case of a loss? a. errors and omissions by a surveyor b. Zoning issues c. recorded documents only d. errors and omissions by the home inspector

c. recorded documents only

a family owns a home located on land which borders a stream. Their rights to the use of the stream are referred to as: a. littoria b. dower c. riparian d. navigational

c. riparian

A sale of interstate real estate securities would be governed by which organization? a. ICC b. CIA c. SEC d. HUD

c. sec

a neighbor was violating a private deed restriction. Who can enforce the neighbor to comply with the deed restriction? a. the homeowner's association b. the president of the HOA c. The courts d. the neighbors in the subdivision that have to comply with the restriction

c. the courts

In order to have a joint tenancy, there must be unities of title, interest, possession and : a. right of survivorship b. curtesy rights c. time of acquisition d. equal financing

c. time of acquisition

What interest does a condominium owner gave in common with other condominium owners? a. divided interest in the common properties b. undivided interest in the limited common properties c. Undivided interest in the common areas d. undivided interest in the master dead plan

c. undivided interest in the common areas

A sale of property being financed that is in a flood-prone area would be required to have: a. homeowners insurance b. a flood endorsement to homeowners insurance c. flood insurance d. a flood insurance rider

c.flood insurance

The main difference between joint tenancy and tenancy in common is that joint tenancy:

carries the right of survivorship

A residential two story home was in area where the cost per square foo was $120. Both floors measured 40' x 50'. The land was valued at $54,400. What would be the total value of this piece of real estate? a. $240,000 b. $249,400 c. $480,000 d. $534,400

d. $534,400

Which of the following must sign a deed in order for it to be valid? a. grantee b. settlement clerk c. grantee and grantor d. grantor

d. Grantor

A deed which states that a person transfers his rights, if any, to the property is a: a. bargain and sale b. grant deed c. special warranty deed d. quitclaim deed

d. Quitclaim

Title to real estate passes to the grantee at the time the completed deed is a. notarized b. recorded c. signed d. delivered and accepted

d. delivered and accepted

when property is taken for public improvements from an unwilling owner, this is referred to as: a. police power b. Taxation c. escheat d. eminent domain

d. eminent domain

A property listed for sale contained asbestos insulation around pipes in the basement. The best way to deal with the asbestos problem would be to: a. remove the asbestos b. fumigate c. Capping d. encapsulation

d. encapsulation

in an effort to protect the public, the CERCLA law was passed dealing primarily with: a. asbestos b. stigmatized property c. radon gas d. hazardous waste

d. hazardous waste

A developer built residential condominiums in an area zoned for both residential and commercial uses. One of the condominium owners wanted to run a business out of their unit but the deed restrictions for the condominium complex would not allow any commercial activity. The condominium owner could: a. obtain a variance b. begin the business anyway c. petition the neighbors to allow d. not do the commercial activity

d. not do the commercial activity

When selling real estate securities, the federal disclosure and anti fraud provisions would apply to: a. seller only b. broker only c. buyer only d. seller and broker only

d. seller and broker only

A couple engaged to be married wanted to purchase a property and take title whereby if either one died, the interest would go to the heirs. The couple would need to take title as: a. joint tenants b. severalty c. tenancy in the entireties d. tenants in common

d. tenants in common

Which of the following statements would be true regarding a condominium? a. individual condominium owners acquire a stock in the condominium development b. individual owners do NOT have to carry insurance on their units as this is covered with an umbrella policy by the c. individual owners acquire a life estate to their units d. the common areas are owned as tenants in common

d. the common areas are owned as tenants in common

What is the purpose of a private deed restriction? a. to control the use of a property for a maximum of 25 years b. to control the zoning of the property in the future c. to control ownership of property in the future d. to control or limit permitted uses of the property

d. to control or limit permitted uses of the property

Which of the following would be an example of a possible environmental hazard? a. a crack in the stucco on the exterior walls b. a food pantry stocked with out of date cans c. old furniture stored in a backyard shed d. to control or limit permitted uses of the property

d. to control or limit permitted uses of the property

When a real estate transfer occurs, where should the new deed be recorded on the public record? a. where the title holder resides b. where the title holder lives c. where the title insurance company is located d. where the property is located

d. where the property is located

A freehold interest in land would best be described as an:

interest for at least a life estate

A property owner noticed that her neighbor was crossing over her property every day in order to take a short cut to work. If the property owner did not want the neighbor to obtain permanent rights of use to her property, she could give the neighbor a:

license

P owned a property adjacent to their residence. P wanted to deed the property to P's parents with the provision that P would get the property back when the parents died. This would be referred to as a:

life estate in reversion

A construction company built a hanger for an airplane which was kept on an owner's property. The owner did to pay for the hangar, so the company filled a mechanics lien on the airplane. Was the construction company justified in the action?

no, because a mechanics lien can only be placed on the improvement itself

Harvesting of crops that require annual planting means that the crops are considered to be:

personal property

A farmer owned some agricultural property. The farmer rented the farm to a tenant who planted an 80-acre corn crop on the farm. The corn crop would be:

personal property of the tenant

Owner J gave J's housekeeper a life estate in a property. J also stipulated that the property go to J's child when the housekeeper died. J died prior to the housekeeper. J's child is referred to as the:

remainder man

In order to find all encroachments on a property, one would need to look at the:

survey of the property

Unless stated to the contrary in a deed, ownership of land by a married couple is assumed to be by

tenancy by the entireties

a commercial tenant installed several items in their leased space in order to more efficiently run their business. Which of the following best describes what happens to installed items once the lease expires?

the tenant would be able to remove the installed items a they would be considered trade fixtures

a seller sold a property to a buyer. The property contained built in bookshelves. Which statement is true regarding the built in book shelves?

they stay with the property as they are permanently attached

In doing a survey, monuments are sometimes used:

to legally describe a piece of real estate

Annual crops that a tenant has the right to harvest after tenancy has ended are called:

emblements

The type of deed that offers the grantee the fullest protection against claims to the title is the a. quitclaim deed b. special warranty deed c. general warranty deed d. bargain and sale deed

C. general warranty deed

A property is listed for sale by a broker. There is a ceiling fixture in the living room that matches all of the furniture in that same room. The listing contract foes not mention anything about the ceiling fixture. Any possible buyer can assume that the:

Ceiling fixture stays with the house