Modern Real Estate Quiz
Circle the letter of the Answer that corresponds to the displayed Question.
1. MLS
A. Multiple listing services
B. An item of personal property that has been converted to real property by being permanently affixed to the realty.
C. Do not own land underneath unit; can stack vertically; 7 days to cancel; own "paint to paint" or enclosed airspace;
common areas owned by all members as tenants in common
D. An agency contract between the owner of income property and a management firm or an individual property manager
that outlines the scope of the manager's authority.
2. Replacement cost
A. The construction cost, at current prices and using modern materials & methodology, of a property that is not
necessarily an exact duplicate but serves the same purpose or function as the original property.
B. An item of personal property that has been converted to real property by being permanently affixed to the realty.
C. An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.
D. A defect on a deed that is frequently cured by a quitclaim deed.
3. extender clause or Override Clause
A. a foreclosure under power of sale in which the deed of trust does not have to be foreclosed through a court action.
B. Generated by movement of electrical currents; prolonged exposure may cause cancer; major concern for property
owners near high voltage line
C. an IRS sanctioned method for real estate investors to defer taxation of capital gains by making a property exchange
rather than by selling the investment property
D. A clause in a listing contract that says the listing broker is entitled to commission for a time period after the listing
expires if the property is sold to a prospect that the broker initially introduced to the client during the listing term.
4. yield
A. a figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value
B. the return or profit on a loan
C. a lease in which the rent is based on a percentage of the gross or net income received by a tenant doing business on
the leased property.
D. the right of a borrower in default on a mortgage loan to reclaim the forfeited property prior to the foreclosure sale
through payment in full of all debt and associated costs.
5. Real Estate
A. Land; a portion of the earth's surface extending downward to the center of the earth and upward infinitely into space,
including all things permanently attached to it, whether naturally or artificially
B. Owned by two or more parties usually not husband and wife; undivided equal interest unless stated; each owner
receives share when sold can transfer without other signing; can acquire at different times; if not stated, tenants in
common; never survivorship
C. a figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value
D. a loan that requires a fixed amount of principal to be paid in each payment with the amount applied to interest varying
as the balance is reduced
, 6. procuring cause
A. The principle that affirms that the value of any component of a property is defined by what its addition contributes to
the value of the whole or what its absence detracts from that value.
B. the business of bringing buyers and sellers together
C. In NC, the most common title for a real estate sales contract
D. The effort that began a chain of events that brings about the desired result. Under an open listing, the broker who is
the procuring cause of the sale receives the commission.
7. Deed
A. an older, traditional approach in mortgaging property where a two-party mortgage instrument is used as security for
the debt; the borrower retains both legal and equitable title to the property.
B. included in a promissory note requiring the borrower to pay a penalty against the unearned portion of the interest for
any payments made ahead of schedule.
C. a tax term used in exchanges; property may be exchanged for life in kind property and the tax postponed (does not
refer to the physical similarity of the properties).
D. A written instrument by which an owner of real estate intentionally conveys right, title, or interest in the parcel of real
estate to another.
8. basement
A. story-high space below the first floor; floor is usually concrete slab
B. Law that requires those engaged in the interstate sale or leasing of subdivision lots to file a statement of record and
register the details of the land with HUD
C. determines the amount of the gain realized from a sale of real property
D. When an improvement or any portion of an improvement, such as a building, a fence, or a driveway illegally extends
beyond the land of its owner and covers some land of an adjoining owner/street/alley.
9. closing statement
A. The maximum possible estate in real property; most complete and absolute ownership; indefinite in duration, freely
transferable and inheritable.
B. A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and
all cash paid out in the transaction.
C. The principle that states that excess profits generate competition.
D. unpaid items to be prorated such as unpaid current real estate taxes or interest on an assumed mortgage that are
owed by the seller but will be paid later by the buyer.
10. judicial foreclosure
A. Property used in an appraisal report that is substantially equivalent to the subject property.
B. the form of foreclosure used in lien theory states; court process
C. a line of credit allowing the mortgagee to make additional future advances of funds to the mortgagor, and are
generally set up as home equity loans.
D. the overhand of a sloping roof that extends beyond the walls of the house.
Circle the letter of the Question that corresponds to the displayed Answer.
11. One entitled to receive a remainder interest in some estate sometime in the future.
A. deed of trust
B. Commercial
C. equity of redemption
D. Remainderman
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