Real Estate Final National Portion
3. When a buyer signs a contract to purchase real estate, he or she does not receive title. Title transfers upon delivery and acceptance of a deed. However, after both buyer and seller have executed a sales contract, the buyer's interest in the property is known as: A. Equitable title B. Executor title C. Fair title D. Voidable title
A
30. USPAP, an ethic course that appraisers are required to take is: A. Uniform Standards of Professional Appraisal Practice B. United States Professional Appraisal Program C. Uniform Standards of Principals of Appraisal Profession D. Uniform Statistics of Professional Appraisal Practice
A
31. How do you convert square feet to square yards? A. Divide the square feet by 9 B. Multiply the square feet by 9 C. Divide the square yards by 9 D. Divide the area by 9
A
33. A type of leasehold interest which runs for a determinable length of time with a specified expiration date, and which is the most common type of leasehold interest is A. Tenancy for years B. Periodic tenancy C. Tenancy at will D. Tenancy at sufferance
A
35. A type of easement in which the rights are vested in the land itself, and not in a person is called a/an: A. Easement appurtenant B. Easement by appropriation C. Easement in gross D. Conditional easement
A
36. Which of the following types of deeds is the best one for the grantee? A. General warranty deed B. Special warranty deed C. Quitclaim deed D. Bargain and sale deed
A
37. The four physical characteristics of land are: A. Permanence, immobility, complexity, and uniqueness B. Fixity, permanence, uniqueness, and balance C. Permanence, homogeneity, uniqueness, and complexity D. Situs, permanence, immobility, and complexity
A
39. A loan which calls for interest only for the term of the loan A. Straight loan B. Adjustable rate loan C. Fully amortized loan
A
4. Individuals who act as intermediaries between the borrower and the lender, qualifying the buyer and finding lenders are: A. Mortgage brokers B. Mortgage bankers C. Banks D. Savings and loans
A
41. Is a person who is recovered from mental illness protected by the handicap status? A. Yes B. No
A
42. Which of the following is NOT a protected class under the Fair Housing Laws? A. Financial status B. Familial status C. Religion D. National origin
A
45. Information about a property that is hand delivered to an interested party would be considered as giving actual notice. A. True B. False
A
46. The term "Bundle of Rights" refers to what? A. The rights of a real property owner B. The rights of a tenant C. The rights of a life estate owner D. The rights of the state
A
47. If a person obtains a loan to buy a lot and then needs another loan to build on his property, the loan will probably need what type of clause to change the priority of the first mortgage before getting a construction loan to build? A. Subordination clause B. Prepayment clause C. Subrogation clause D. Defeasance clause
A
48. The FHA's main objective is to assist in providing housing opportunities for low and moderate-income families. A. True B. False
A
49. The first Civil Rights law was passed in: A. 1866 B. 1988 C. 1964 D. 1974
A
51. Because of the _______ clause, in a trust deed the property can be sold without going through foreclosure. A. Power of sale B. Mortgage C. Reconveyance D. Deficiency
A
53. Any type of depreciation in which the amount of money spent on repairing the deficiency is equal to or less that the resulting increase in value is considered to be: A. Curable B. Incurable C. Functional D. External
A
54. A fee simple estate may have special conditions or limitations attached to the ownership. This is called: A. A fee simple defeasible estate B. A conditional estate C. A non-freehold estate D. A modified freehold estate
A
55. A loan is made for $60,000 at a 8% interest. How must is the first month's interest payment? A. $400 B. $480 C. $500 D. $4800
A
56. A building which was built before a zoning ordinance was enacted, but is allowed to continue until the building is town down or its use is changed, is called a: A. Non-conforming use B. Variance C. Conditional use permit D. Directive zoning
A
57. Ownership rights of ocean front property are know as: A. Littoral rights B. Literal rights C. Appropriated rights D. Navigation rights
A
58. The primary difference between the purchase money mortgage and the contract for deed is that: A. With a purchase money mortgage the buyer receives full title at the time of sale B. With a contract for deed the buyer receives full title at the time of sale C. With a purchase money mortgage the seller retains title until the debt is paid D. With a contract for deed no money changes hands
A
60. First hand information regarding a property such as physical occupation or having a survey done is: A. Actual notice B. Constructive notice C. Notice D. Acknowledgment
A
61. The right of the federal, state, or local government to take private property for public use is known as: A. Eminent Domain B. Condemnation C. Escheat D. Adverse possession
A
64. A qualification in a fee simple estate which prevents the new owner from performing some action or activity is known as a A. Condition subsequent B. Reverter clause C. Life estate D. Fee simple
A
66. The gross adjustment is an indication of: A. How good a comparable is B. The value of the subject property C. How many comparables are needed D. The least amount the property will sell for
A
67. Projects authorized or supported by the government in any way must file what document in order to become eligible for federal assistance? A. Environmental impact statement B. Building permit C. Master plan D. Request for zoning
A
68. The process of determining the worth of something is called: A. Valuation B. Estimating C. An appraisal D. Educated guess
A
69. If a husband and wife own property under tenancy by entireties, when one spouse dies who inherits the property? A. The other spouse inherits the property B. The property is divided between the children C. The property is divided between the other spouse and the children D. The property goes to the state
A
7. A method of estimating value that gives a rough estimate and is not considered a full-fledged appraisal is called: A. Gross Rent Multiplier B. Income approach C. Cost approach D. Sales comparison approach
A
71. A way of borrowing against the equity in your property without taking out a second mortgage is a/an: A. Open end loan B. Reverse mortgage C. Term loan D. Graduated loan
A
72. Which act prohibits discrimination based on marital status and age, in addition to the other protected classes? A. Equal Credit Opportunity Act B. Americans with Disabilities Act C. Fair Housing Act D. Civil Rights Act
A
73. The right that insures an owner will be able to use and enjoy his property is the right of: A. Quiet enjoyment B. Possession C. Control D. Exclusion
A
74. The person in a mortgage who pledges his property as collateral for the loan is called the: A. Mortgagor B. Mortgagee C. Giver D. Receiver
A
75. The type of mortgage which is usually used by a subdivision developer constructing many homes is a: A. Blanket mortgage B. Package mortgage C. Wrap-around mortgage D. Construction loan
A
8. A form of financing in which the lender holds a lien until the debt is repaid is called: A. Lien theory B. Title theory C. Mortgaging D. Collateral
A
80. Regulation Z provides strict regulation of real estate advertisements in all media that refer to: A. Mortgage financing terms B. Buying a house C. Getting a loan D. Refinancing your house
A
81. A house appraised for $180,000. The sale price is $175,000. The buyers have obtained an 80% loan for 30 years at 7% interest. How much will they need for the down payment? A. $35,000 B. $30,000 C. $36,000 D. $40,000
A
82. The main difference between mortgage brokers and mortgage bankers is that mortgage bankers: A. Use their own funds and service the loan B. Act as intermediaries between the borrower and lender C. Do not service the loan D. There is no difference
A
83. The term that appraisers use to refer to the amount paid today for a property is: A. Market price B. Market cost C. Market value D. Sale price
A
84. One difference between a freehold estate and a non-freehold estate is: A. A non-freehold estate is for a determinable length of time B. A non-freehold estate does not confer possession C. A freehold estate cannot be willed D. A freehold estate is for a determinable length of time
A
9. First hand information regarding a property is known as: A. Actual notice B. Constructive notice C. Verification D. Acknowledgement
A
90. FHA loans are _____, and VA loans are_____. A. Insured. Guaranteed B. Guaranteed, insured C. Insured, insured D. Guaranteed, guaranteed
A
91. The letters POB, when used in describing land, stand for: A. Point of beginning B. Post office box C. Point of bearing D. Placement of bearing
A
92. Another name for "external depreciation" is: A. Economic depreciation B. Physical depreciation C. Curable depreciation D. Functional depreciation
A
93. A trust deed is similar to a ______ in that it is employed to pledge an interest in real property in exchange for a loan or other consideration. A. Mortgage B. Deed C. Reconveyance D. Promissory note
A
94. When personal property becomes permanently attached to real property it becomes part of the real property. This is called: A. Attachment B. Annexation C. Partition D. Accretion
A
95. Which of the following ways of determining what is a fixture supersedes all other considerations? A. Agreement between the parties B. Method of attachment C. Intention of the party doing the attachment D. Adaptability of the attachment to the property
A
96. A house sells for $200,000 and the buyers obtain a loan for $160,000. The house appraised for $210,000. What is the loan to value ratio? A. 80% B. 76% C. 84% D. 74%
A
97. A property has an assessed value of $30,000. The tax rate is $4/100 of assessed value. What is the tax? A. $1200 B. $120 C. $12,000 D. $400
A
98. The duties owed to the customer, the person you do not represent, by the agent are: A. Honesty and truthfulness B. Honesty and confidentiality C. Fairness and loyalty D. Confidentiality and loyalty
A
17. How much does an owner sell for if he nets $30,000, pays off a mortgage of $55,000, gives his attorney $1,500 for services, and pays his broker a 6% commission? A. $91,690 B. $92,021 C. $93,400 D. $94,000
B
24. Taxes on a house are $600 for the year, paid in arrears. The tax year runs from April 1st to March 31st. The closing is on June 30th. Using a 360 day year, who owes for the taxes and how much? A. $450, seller owes B. $150, seller owes C. $450, buyer owes D. $150, buyer owes
B
28. In addition to prohibiting discrimination in the lending process based on the applicant's race, color, religion, national origin, and sex, ECOA also prohibits discrimination based on: A. Marital status and age B. Handicap status and age C. Familial status and marital status D. Familial status and handicap status
B
32. The distance between township lines is A. 1 mile B. 6 miles C. 16 miles D. 36 miles
B
34. A contract for the sale of a property which does not state the consideration to be paid and is not signed by the parties would be A. Voidable B. Void C. Enforceable D. Illegal
B
5. The agent whose actions are the primary reason for a sale taking place is said to be the: A. Designated agent B. Procuring cause C. Duty agent D. Agent of record
B
50. Which group was added as a protected class in 1974? A. Nationality B. Sex C. Familial status D. Handicap
B
52. The selling price of the property would be listed on the closing statement as: A. Credit to buyer, debit to seller B. Debit to buyer, credit to seller C. Debit to buyer, nothing to seller D. Credit to seller, nothing to buyer
B
6. A mortgage which is subordinate to other mortgages, but includes in its payment the payments for the other mortgage(s) is a: A. Blanket mortgage B. Wrap around mortgage C. Package mortgage D. Purchase money mortgage
B
62. "Offer and acceptance" is also known as A. Meeting of the minds B. An executed contract C. A unilateral contract D. An act of sale
B
63. The clause in a mortgage that states that the mortgagor has good and clear title to the property and has the right to convey it is the: A. Granting clause B. Warranty of title clause C. Defeasance clause D. Title clause
B
70. The person who lends the money is the: A. Mortgagor B. Mortgagee
B
76. Anything man-made that is added to the land such as homes, buildings, fences, or sidewalks is known as: A. Movables B. Improvements C. Fixtures
B
79. The process of state, local, or federal government in taking private property for public use is: A. Eminent Domain B. Condemnation C. Adverse possession D. Just compensation
B
85. Discount points can only be paid by the buyer. A. True B. False
B
86. A lease which includes a fixed amount of rent plus a share, or all of the property's operating expenses is a: A. Gross lease B. Net lease C. Graduated lease D. Index lease
B
87. Under which type of foreclosure is the lender required to refund to the borrower any profit realized on the sale of the foreclosed property? A. Strict foreclosure B. Foreclosure by sale C. Friendly foreclosure D. Mortgage foreclosure
B
1. Which of the following would NOT be used when determining the value of a house using the Sales Comparison Approach? A. Financing terms B. Location C. Annual income D. Market conditions
C
16. A determinable fee estate is ownership with A. A set length of time B. A lease C. Conditions D. Life estate
C
2. A person who is appointed by the court to carry out the terms of a will is called a/an: A. Executor B. Executrix C. Administrator D. Devisor
C
20. The method by which real property may become personal property is called: A. Adaptability B. Annexation C. Severance D. Attachment
C
23. If the owner of the servient estate buys the land, which is the dominant estate, what happens to the easement? A. It is terminated B. It continues C. It must be decided by the parties D. Any of the above
C
38. A loan which has equal monthly payments consisting of principal and interest is: A. Adjustable rate loan B. Straight loan C. Fully amortized loan
C
40. A loan in which the interest rate fluctuates according to some external index A. Straight loan B. Fully amortized loan C. Adjustable rate loan
C
43. There are three basic types of buyer agency agreements. In which type is the agent guaranteed a commission regardless of who sells the property? A. Open buyer agency B. Excusive agency buyer agency C. Exclusive buyer agency D. None of the above
C
44. In which of the following types of leases is the rent tied to an external index? A. Graduated lease B. Ground lease C. Index lease D. Straight lease
C
65. The gradual exposure of land behind a receding waterline is called A. Erosion B. Alluvion C. Reliction D. Dereliction
C
88. An investor wishes to receive a 10% rate of return on his investment. If a gross income of the year is $60,000 and annual expenses are $10,000, how much should he pay for the property? A. $50,000 B. $150,000 C. $500,000 D. $600,000
C
89. In which of the following types of leases is the rent generally tied to an external index? A. Graduated lease B. Ground lease C. Index lease D. Straight lease
C
22. A man owns a life estate dependent of his own life. He leases the property for 3 years and dies one year later. Which is true concerning the lease? A. The lease is no longer valid B. The lease must be honored C. The tenant has six months to vacate the property D. The lease must be renegotiated
D
59. When underwriting a loan, the lender considers all of the following EXCEPT: A. The borrower B. The property C. The location of the property D. The race of the borrower
D
77. The term that means that the contract must be performed within the time limit specified is: A. Specific performance B. Equity C. Conditional acceptance D. Time is of the essence
D
78. An office building has a monthly income of $10,000. The GRM for the area is 12. What is the value of the building using the gross rent multiplier formula? A. $120,000 B. $144,000 C. $1,200,000 D. $1,440,000
D
99. Which of the following is a form of owner financing A. Contract for deed B. Install land contract C. Purchase money mortgage D. All of the above
D
10. Which type of ownership is characterized by possession, interest, time, and title, or PITT: A. Joint tenancy B. Tenancy in common C. Tenancy in severalty D. Condominiums
A
100. The person conveying title is known as the: A. Grantor B. Grantee C. Seller D. Giver
A
11. Discount points can be thought of as: A. Pre-paid interest B. Part of the down payment C. Part of the principal D. Insurance
A
12. A seller wants to sell his house. He must pay off a mortgage of $50,000 and wants to have $30,000 in cash. His broker will charge a 6% commission. What is the least he can sell for? A. $85,106 B. $84,800 C. $85,000 D. $90,000
A
13. What clause provides oversight of operation of investment properties during foreclosure? A. Receiver clause B. Subordination clause C. Subrogation clause D. Defeasance clause
A
14. Allowing additional time within which to pay a debt is known as: A. Equitable right of redemption B. Loan extension C. An add-on loan D. A promissory extension
A
15. A group administered by the federal government which acquires loans for urban renewal projects is: A. GNMA B. FNMA C. FHLMC D. FSA
A
18. An easement appurtenant involves: A. One tract of land B. Two tracts of land C. At least two tracts of land D. One or more tracts of land
A
19. A recorded notice of impending litigation against a property is called: A. Lis pendes B. Lien C. Judgment D. Mortgage
A
21. A purchase money mortgage is used in A. Owner financing B. Conventional loans C. VA financing D. FHA loans
A
25. The borrower, or the person or entity who makes a mortgage is the: A. Mortgagor B. Mortgagee C. Trustor D. Trustee
A
26. Ownership rights that apply to land that is adjacent to navigable waterways extend to: A. The water's edge B. The center of the waterway C. 20 feet from the water's edge D. 10 feet from the water's edge
A
27. In which type of foreclosure is the statutory period of redemption eliminated? A. Deed of Trust foreclosure B. Strict foreclosure C. Foreclosure by sale D. Court foreclosure
A
29. When the lender holds the title to the property, the borrower has _______ the title to the lender. A. Alienated B. Lent C. Executed D. Referred
A
