National Final Exam #1

Which of the following policies of title insurance is used by most buyers of real property?

At what point does the three-day right of rescission under the Truth in Lending Act begin?

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

Recording a deed gives:

How many square miles are in one township?

A joint tenancy between two people would become a tenancy in common if one owner:

A voidable contract is one that:

The capitalization rate provides for a return on the investment through:

The characteristic that distinguishes real property from personal property is:

Which of the following statements regarding the power of eminent domain is true?

Escrow instructions may be executed by:

A person with riparian rights:

When real estate taxes remain unpaid, they constitute a lien that is:

An owner sold his property through his own efforts, but still wound up paying a commission. He used a/an:

Which of the following forms of ownership is the highest form of ownership?

Which of the following would be an improper action for a real estate agent?

To an appraiser, depreciation is:

An ALTA policy of title insurance would cover:

“Capitalization” refers to a process used by an appraiser to:

Which of the following easements runs with the land and is binding on all subsequent owners?

What is the main difference between real property taxes and special assessment bonds?

A general partnership is characterized by:

When an escrow agent is handling an escrow for both parties in a transaction, she is acting as an:

A person who is authorized to act legally for another person is a/an:

Jerry grants Kerry a life estate, measured according to the life of Larry. Kerry dies before Larry does. What happens to the life estate?

Which of the following would be a violation of the Sherman Antitrust Act?

A listing broker should disclose all of the following to a purchaser, EXCEPT:

If a lender needs to choose between issuing a conventional or FHA loan to a prospective borrower, what will be the primary factor in its decision?

The constitutional authority for zoning laws derives from the state’s:

A zoning action changed the zoning of an area from commercial to residential. This change in zoning classification would be known as:

A loan that complies with Fannie Mae and Freddie Mac guidelines is known as a:

A group of developers needs a long-term loan of $30 million to build a shopping mall. The most likely source of a loan would be a:

If an advertisement in a newspaper for real property discloses only the annual percentage rate:

Lenders will often charge a fee for document preparation and other services in issuing a new loan, which is expressed as a percentage of the face amount of the loan. This fee is known as:

All of the following are classified as personal property, EXCEPT a/an:

A potential buyer wants to build a single-family residence on a vacant plot of land. The method of appraisal likely used is the:

Ad valorem property taxes would be levied against:

Of the following items, which would be least likely to appear on a closing statement as a debit to the buyer?

Which of the following properties could be depreciated for income tax purposes?

A seller has listed a property for $400,000. A buyer submits an offer for $360,000 with a three-day acceptance period. The seller responds with a counteroffer of $380,000. The next day, the seller changes her mind and decides to accept the original offer of $360,000. The acceptance would be:

Which of the following would not be included in a disclosure statement required by the Truth in Lending Act?

When there has been a drastic change in the demographics of a neighborhood, an agent showing homes to buyers:

Which of the following warranties is present in a grant deed?

A broker misrepresented his principal’s property when showing it to a buyer. The actions of the broker may subject his principal to:

In a condominium, real property tax assessments:

A multiple listing service issues a listing agreement form with a pre-printed commission rate. This would be considered:

A broker negotiates the sale of a property. He is to receive a $500 commission from the seller at closing. A week before closing, he receives a $5,000 cash deposit. He is permitted to do which of the following?

An existing contract was replaced by an entirely new contract. This would be defined as a:

If a zoning law permits a certain use in a subdivision where that use is prohibited by deed restrictions, which will prevail?

Zoning ordinances, in addition to regulating how land may be used, also regulate:

A lender receives a return on a mortgage loan in the form of:

A broker is approached by a seller with a home for sale. The seller tells the broker that he does not wish to sell to a minority buyer. What should the broker do?

A parcel of property that is subject to an easement is said to be:

Who may refer to himself as a REALTOR®?

A quitclaim deed conveys only the present right, title, and interest of the:

All of the following persons could sue for specific performance in the event of a breach of contract, except:

A broker received a $12,000 commission on a sale of a property for $200,000. The broker\’s commission rate was:

An executed contract is a contract that is:

A buyer\’s agent has a fiduciary duty to:

A buyer presents a written offer along with a deposit to the selling broker, who accepts them on behalf of the seller. The broker’s authority to accept the deposit comes from where?

Joint tenancy ownership of real property requires which of the following?

A buyer obtained a loan for 80% of the value of his property. The loan had a 9% interest rate, and the amount of interest paid in the first year totaled $40,500. What is the value of the property?

A subordination clause in a deed of trust will:

If interest is calculated on unpaid accrued interest as well as on the principal balance, it is known as:

A note that is negotiable and signed by a borrower is:

When a purchase and sale agreement contains a time is of the essence clause, if the buyer fails to meet a deadline set in the contract:

A property owner with several vacant units decides to cut costs by seeking new tenant referrals from current tenants. Most of his current tenants are white. Is this a violation of the Fair Housing Act?

An apartment complex owner has several vacancies one year and suffers a $5,000 operational loss as a result. For federal income tax purposes, she may:

Which of the following would terminate an agency (listing) agreement?

Deed restrictions for a subdivision development are created by:

An easement in gross:

Economic growth that is too strong and too fast is usually accompanied by:

Which of the following statements about a blind ad is true?

Of the following groups of liens, which group does not contain any general liens?

The secondary mortgage market facilitates the transfer of existing mortgages between:

An appraiser values an investment property at $200,000 using a capitalization rate of 9%, based on its annual income of $18,000. What would the value of the property be if a 12% capitalization rate is applied?

During the process of foreclosure on a deed of trust, the trustor retains the right to cure the default and reinstate the loan. Who has the right of possession of the property during this period?

Brown paid $355.20 for a two-year fire insurance policy that was issued June 1, 2001. As of August 15, 2002, what is the prorated value of the unused portion?

A straight note:

Covenants, conditions, and restrictions that affect all properties in a subdivision are created by:

How many acres are in a property that is described as the \”S 1/2 of the S 1/2 of the W 1/2 of W 1/2 of Section 2, Township 4N, Range 2E?\”

Under RESPA, a lender is permitted to charge for all but which of the following services?

Deed restrictions are:

Broker Betty refers all of her clients to a particular title insurance company, who in turn pays her $20 per referral. Under RESPA, this is permitted:

An easement would terminate by merger if:

Depreciation on real property means that:

In an integrated urban neighborhood, rising crime rates have caused a number of white families to move. Observing this trend, a broker begins actively soliciting listings from white families, providing discounted commission rates and frequent reminders that neighborhood values are declining. In doing so, the broker is:

A ranch is 36 miles square. What is the number of sections contained in the ranch?

After the parties have signed escrow instructions, the escrow officer notices that one item in the escrow instructions is in conflict with the terms of the purchase and sale agreement. He should:

Gene purchased a property from Paul on a land contract. He made a $2,500 downpayment and made some of the payments, but soon stopped making payments and abandoned the house. Paul reclaimed possession. Which of the following is correct?

Upon selling their house, the Knotts received a check from escrow for $223,122.60.Escrow had deducted the broker’s commission of 6% and other closing costs of $2,421. What was the selling price?

The Federal Fair Housing Act was intended to:

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

The commission a broker will charge a seller is determined by:

An unlawful detainer action would be filed by an offended:

After an airport changed its flight patterns, an owner of nearby property was bothered by constant aircraft noise. The owner brought suit against the airport demanding just compensation for the damage to the value of his property. This is an example of:

The purpose of the Equal Credit Opportunity Act is to:

The term \”laches\” refers to:

A contract for the transfer of property is binding if it:

A court order stopping a person from burning rubbish on his own property would be a/an: