National Final Exam #2

A loan, secured by a mortgage, in which a borrower can reborrow up to the original loan amount without having to requalify for the loan, is called a/an:

A mobile home owner removes the wheels from the home and permanently mounts it on a concrete pad. Which of the following is true?

In a sale-leaseback:

A landlord may legally reject a tenant\’s application for a lease if:

A lease in which it is agreed that the rental payments will increase at regular intervals by a specified amount or according to a specified formula is called a:

A tenant on a long-term commercial lease is going out of business. Because contract rent on the tenant\’s lease is well below current market rents, a broker advises the tenant to:

Which of the following statements about a lease is true?

An apartment owner provides free, unassigned parking to her tenants. A prospective tenant who is handicapped asks that he be assigned a parking space next to his apartment. What is the owner required to do?

Under Title VIII of the Federal Fair Housing Act, certain transactions are exempt from FHA provisions. Which of the following is an allowable exemption?

A principal instructs the agent not to show his property to members of a certain ethnic group. What should the agent do?

A local bank refuses to make residential loans in a particular section of town, because of the ethnic background of its residents. This is a discriminatory practice called:

Broker H charges a leasing fee of one-half of the first month\’s rent, plus a management fee of 7% of the total lease payments. H negotiates a two-year lease at a monthly rental of $950. What has H earned on this transaction?

Which one of the following transactions is subject to the Real Estate Settlement Procedures Act?

The term usury refers to which of the following?

For zoning purposes, the distance from a lot boundary to the front wall of a building on the lot is called:

All of the following are appraisal terms except:

After the sales contract was signed by the buyer and seller but before the transaction closed, the broker discovered there was faulty wiring in the basement. The broker should:

When showing an income-producing property, Listing Broker W advises Buyer M that this property is likely to be very profitable in the future because of its location. W\’s behavior might result in:

Both private restrictions and zoning define and limit land uses for what purpose?

All of the following are rights that transfer with the land when the property is sold, EXCEPT:

Which of the following would ordinarily file a request for notice of default?

A property owner has an old motel along a highway. He tears it down and builds a commercial building on the site. His decision was based on what principle?

When a deed of reconveyance is received, it should be recorded by the:

Marks bought a home for $203,000, and obtained an 80% loan for thirty years at 8.75% interest. His monthly payment is $1,277.60. How much interest will Marks pay over the life of the loan?

Which of the following statements is CORRECT about a deed restriction that prohibits building a home of less than 3,000 square feet on the lot?

Which of the following would have first lien priority?

Which of the following would NOT be revealed by a title search?

T signed a deed under duress. The deed is:

A contract for deed (land contract) conveys:

M\’s property is not on the lake, but M has an easement across S\’s property to allow M to reach the lake. M has decided to abandon his plan to build on the lot, so he sells his property to S. This action terminates M\’s easement through:

According to state statute, the right of use of another\’s property that is acquired over a long period of time is called a/an:

A written transfer of a mortgage note from one lender to another lender is a/an:

The closing date is January 25. The annual property tax bill is $2,124, and the seller hasn\’t paid any part of it yet. Using a 360-day year for proration, at closing the:

A 17-year-old agrees in writing to purchase a home from S. What is the legal status of the contract?

S purchases G\’s home and assumes G\’s loan payments without the lender\’s written permission. Under these circumstances, the lender may declare the entire loan balance due in full at once if the loan agreement contained a:

Broker X secured a nonexclusive listing from homeowner G. Who must sign the listing?

A municipality installs sidewalks and charges local homeowners for their proportionate share of the cost of installation. This is an example of:

How is an appraiser\’s fee determined?

How is a construction loan normally disbursed?

In spite of J\’s objections, the city took a portion of J\’s lot as part of a street widening project. The process by which the property was taken was:

Buyer S wants to finance the purchase of a home with a 90% conventional loan, but the bank turns him down. Seller W still wants to make the deal and offers to accept a 10% downpayment and to personally finance the remainder of the purchase price. If the security agreement is a mortgage, it would be called a:

A lawsuit to determine who has title to a piece of property is called a:

R buys a commercial property from B that is currently leased to —Which of the following is correct?

The policies and procedures that regulate the recordation of documents that convey rights and/or interests in real estate are established by:

Broker J sold $3,500,000 worth of real estate. Her commissions totaled $185,000. She was paid 7% of the first $2,000,000. What is the rate of commission on the remainder of the sales?

A net lease requires the tenant to pay a share of the:

A property is zoned for multi-family dwellings with up to four units, with a minimum lot size of 6,000 square feet. The same property is covered by restrictive covenants that limit its use to single-family homes with a minimum lot size of 17,500 square feet. Under these circumstances, which of the following uses would be permitted?

The law that requires that a deed be in writing is the:

A residential property with built-in bookcases is sold. Which of the following statements is correct?

K\’s offer to purchase W\’s home states that the offer will remain open for 72 hours. Twenty-four hours later, K notifies the broker that she is withdrawing the offer. The broker should tell K that:

The Taxpayer Relief Act of 1997 states that if a residential property is sold for a gain of less than $250,000, the seller will not have to pay taxes on the transaction if:

Broker G advertises a new listing, and the ad says only that the existing loan is assumable at 8.5%. Which of the following statements is TRUE?

When someone signs a document in front of another person who is authorized to witness the signature, the act of signing is referred to as:

Which of the following could be an example of voluntary alienation?

A one-half acre lot is appraised at $45,000. The home on the lot has depreciated by 25% and has a remaining value of $180,000. Using the cost approach to value, what is the estimated original value of the property?

The operating expenses for an income-producing property include all of the following except:

The Truth in Lending Act concerns consumer loan transactions. For the purposes of the act, a loan is a consumer loan if it is:

Which of the following is an example of economic obsolescence?

The deed that creates the least liability for the grantor is the:

If the lender charges three points on a $100,000 loan, the borrower will be required to pay:

Which one of the following provisions, contained in a promissory note or security instrument, allows a lender to demand all sums due at once in the event of nonpayment?

A condominium owner fails to pay property taxes. This results in a:

The highest loan-to-value ratio for a single-family home is available with which type of loan?

A clause in a contract that means performance on the exact dates specified is an essential element of the contract is called the:

The main purpose of a mortgage is to:

As evidence of her ownership interest in a condominium project, a purchaser will receive:

If a seller accepts a promissory note as earnest money but the buyer doesn\’t provide the promised cash by the agreed upon date, which of the following is true?

The Zs lease a building to open a health-food restaurant, and they install equipment related to their business. When the Zs close the restaurant and prepare to move out, they want to take the equipment with them. Which of the following is correct?

If the seller rejects an offer from a prospective buyer that matches the terms set forth in the listing agreement, the seller may be:

The process of interpreting the value indicators yielded by the different appraisal methods to arrive at a final value estimate is called:

The purchase and sale agreement includes a contingency clause for the benefit of the buyer. It is clear now that the contingency will NOT be met by the closing date. The contingency clause can be waived by:

After taking a listing on a home, K wants to determine its square footage. To do this, he must measure the:

When a corporation buys a piece of property with another entity, how does it take title?

T deeds her home to B for B\’s lifetime, with the provision that title will pass to C when B dies. C is referred to as:

In the cost approach, after calculating the replacement cost, the appraiser arrives at an estimate of the present value of the improvements by:

Which of the following would not influence the value of real property?

A father conveyed a life estate to his child for her lifetime. Years later the child sold her interest to a friend. Which of the following statements is true?

Which of the following is an example of riparian water?

Which of the following is a primary reason for holding client funds in a trust account?

A dual agency by a real estate broker is:

T makes an offer on J\’s home but wants to write a post-dated earnest money check to accompany the offer. What should the broker do?

Q tells Broker T that she wants to net $200,000 from the sale of her home. T knows that Q will have to pay $450 for a standard title insurance policy, half of a $360 escrow fee, $225 in attorney\’s fees, and a commission that is 6% of the selling price. What must the property sell for if Q is to receive her desired net?

An appraiser should not use a property as a comparable if:

Which of the following is considered personal property?

W and U purchase commercial property as joint tenants. When W dies, the property will pass to:

Which of the following must take the form of a written document?

ABC Realty lists a property for sale with a multiple listing association. XYZ Realty conveys an offer on the property from a prospective buyer. If the listing agreement contains a unilateral offer of subagency, which of the following is correct?

T owns a commercial property management firm. T also owns a carpet-cleaning firm. T contracts with her carpet-cleaning company to clean the carpets for all the buildings T manages. T may legally do this if:

A salesperson lists a property. Immediately after listing the property, the sellers notify the salesperson that a registered sex offender lives down the block, six houses away. Which of the following is correct?

What instrument is used to assign certain legal rights to another person?

The Uniform Vendor and Purchaser Risk Act will apply to a real estate transaction:

A quiet title action is a/an:

How many square miles are in one township?

City building codes are designed primarily to establish:

Which of the following is not a lien against real property?

Which of the following items would be considered a part of a condominium unit, instead of a common element?

A legal description reads: “Beginning at the NW corner of Ash and Elm, then continuing north 40 feet along Elm, then due west for 100 feet, then south 40 feet to Ash, and then east for 100 feet along Ash to the point of beginning.” Which type of legal description is this?

A mechanic\’s lien on several properties is an example of a:

An exclusive listing agreement is:

Which of the following is not a consideration in determining whether or not an item is a fixture?