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Real Estate
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Exam of 33 pages for the course studytests at studytests (Real Estate)
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Real EstateThe period in which a mortgagor may redeem title to real estate after a
foreclosure judgment is the:
A:writ of attachment
B:doctrine of equity
C:statute of frauds
D:redemption period - CORRECT ANSWER-D: redemption period Explanation
The redemption period is the period during which the defaulted borrower can
continue to live in the property and attempt to pay off the debt resulting from the
foreclosure judgement. State statute determines the redemption period.
Which of the following tests would NOT be used to determine if a hot tub is a
fixture or personal property?
A:Intent of the parties
B:Method of attachment
C:Adaptation of the article
D:Relationship between the parties - CORRECT ANSWER-D:Relationship
between the parties
Explanation
The four tests a court will use to determine a property's classification are how is it
attached, how is it adapted, what was the party's intent, and any agreement
between the parties regarding the item.
Which of the following is real property?
A:A window air conditioning unit
B:A tree growing on a piece of property
C:A removable pier
D:An uninstalled water softener - CORRECT ANSWER-B:A tree growing on a
piece of property
Explanation
Real property includes the land, the structures, and any fixtures attached to the
structures. Trees are considered part of the land if they are planted on the
property.
Property taxes are to be prorated through:
,A:the day prior to closing
B:noon on the day of closing
C:the day after closing
D:the day of closing - CORRECT ANSWER-D:the day of closing
Explanation
In the WB-11 Residential Offer to Purchase, line 364 states: "Any income, taxes
or expenses shall accrue to Seller, and be prorated at closing, through the day
prior to closing."
How can a seller terminate a listing contract?
A:Only with a notarized statement from the seller to the listing firm's MLS
B:Written notice to the DSPS
C:In writing, delivered according to the terms of the listing contract
D:With a phone call to the listing firm - CORRECT ANSWER-C:In writing,
delivered according to the terms of the listing contract
According to the WB-11 Residential Offer to Purchase who is responsible to pay
special assessments levied against a seller's property after the date of the offer
but prior to acceptance?
A:Listing firm
B:Seller
C:Buyer
D:Selling firm - CORRECT ANSWER-C:Buyer
The buyer, in an effort to meet the terms of the Financing Contingency found in
the WB-11 Residential Offer to Purchase, delivers a notice to the seller indicating
that the buyer is ready to proceed to closing. Has the buyer waived the Financing
Commitment Contingency?
A:Yes, because the buyer wants to proceed to closing.
B:No, because the buyer did not deliver a loan commitment.
C:No, because the buyer does not have a check from the bank.
D:Yes, because the financing contingency has been removed. - CORRECT
ANSWER-B:No, because the buyer did not deliver a loan commitment.
A condominium owner has to pay a condominium fee each month. The
condominium fee is calculated on an annual basis and then is paid monthly in
equal installments. The fee paid is 1% of the assessed value of the unit, which is
,$240,000. The fee is due on the first of every month. How much would the owner
of the condominium have paid in condominium fees as of June 1?
A:$240
B:$2,400
C:$1,200
D:$200 - CORRECT ANSWER-C:$1,200
Explanation
$240,000 assessed value x .01 = $2,400. $2, months = $200 monthly
fee. $200 x 6 = $1,200 paid in condominium fees through June 1.
What is a planned unit development?
A:A process for a government to take private property for a public development
B:A regulatory process which promotes unified development for a development
specially approved by the zoning authority for the developer
C:A development where single family homes are owned as condominiums
D:A regulatory framework for protecting land near bodies of navigable water -
CORRECT ANSWER-B:A regulatory process which promotes unified
development for a development specially approved by the zoning authority for
the developer
What is the legal effect of a counter-offer?
A:Cancellation of an existing contract
B:Activation of the bump clause
C:Modification of the terms of an existing offer
D:Rejection of the offer and presentation of a new offer - CORRECT
ANSWER-D:Rejection of the offer and presentation of a new offer
A builder completed a new home and is going to live in it for 3 weeks prior to
closing of the sale to a buyer. Must the builder complete a real estate condition
report?
A:No, because the property is not listed with a firm.
B:Yes, because the property meets the definition of one-to-four dwelling units.
C:No, because the property is new construction and is exempt.
D:Yes, because the property will establish a pattern of sales for the builder. -
CORRECT ANSWER-B:Yes, because the property meets the definition of
one-to-four dwelling units.
, Title insurance does NOT insure over:
A:defects found in public records
B:incorrect marital statements
C:facts disclosed by survey
D:forged documents - CORRECT ANSWER-A:defects found in public records
A seller accepts an offer for $91,575 with a $10,000 mortgage carried by the
seller for the buyer. After adjustments between the parties were made on the
closing statement, the buyer ended up owing the seller $78,500 in cash on
closing day. What was the amount of transfer tax paid by the seller?
A:$274.80
B:$274.72
C:$235.50
D:$244.80 - CORRECT ANSWER-A:$274.80
Explanation
$91,600 x .003 = $274.80.
A buyer may be protected under a previous firm's listing contract in all of the
following ways EXCEPT:
A:the buyer saw the property at an open house
B:the buyer submitted an offer to purchase
C:the buyer attended an individual showing of the property
D:the buyer discussed the potential terms of purchasing the property directly with
the seller - CORRECT ANSWER-A:the buyer saw the property at an open house
A seller lists a house with Salesperson A. The buyer attends Salesperson A's
open house and decides to write an offer. The buyer does not have an agency
agreement with Salesperson A and she asks Salesperson A to write the offer.
Which of the following CORRECTLY identifies the relationship between the buyer
and Salesperson A?
A:The buyer is Salesperson A's customer
B:The buyer is the principal of Salesperson A
C:Salesperson A is the buyer's agent
D:The buyer is Salesperson A's client - CORRECT ANSWER-A:The buyer is
Salesperson A's customer
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