Modern Real Estate Quiz
Circle the letter of the Answer that corresponds to the displayed Question.
1. Change
A. one who represents the interest of another person.
B. An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an
equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the
substitution.
C. The fact that no physical or economic condition remains constant. Real estate is subject to natural disasters,
changing demands in the market etc.
D. Department of Housing and Urban Development. Enforces the Federal Fair Housing Act.
2. Time-share Ownership
A. A buyer who is financially qualified, prepared to buy on seller's terms, and ready to take positive steps toward
consummation of the transaction by showing willingness to enter into an enforceable contract.
B. when the broker/firm represents the buyer and the seller in the same transaction
C. a source of funds for homeowners who wish to finance the purchase of expensive items; consolidate existing
installment loans on credit card debt; or pay for medical, educational, home improvement, or other expenses
D. Any right to occupy a unit of real property during five or more separated time periods over a period of at least five
years. 5 day cancellation (without penalty) 10 days developer keeps money in trust; 30 days to refund; $500 fine to
developer
3. Constructive Notice
A. A listing based on the net price the seller will receive if the property is sold; broker can offer property at highest price
to increase the commission.
B. provides that on sale of the property by the borrower to a buyer who wants to assume the loan, the lender has the
choice of either declaring the entire debt to be due and payable immediately or permitting the buyer to assume the loan
C. Notice given by way of making ownership part of public record (by recording conveyances of real property).
D. The amount of goods available in the market to be sold at a given price. The term is often coupled with demand'
4. Recording
A. When a claimant has made use of another's land for a certain period of time. Use must be continuous, exclusive, and
without the owners approval. (20 years in NC)
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. Making documents that affect property ownership readily available as matters of public record.
D. when the broker/firm represents the buyer and the seller in the same transaction
5. slab
A. a way to lower the initial interest rate on a mortgage or deed of trust loan; common type is called a 3-2-1
B. An estate in which the holder has a fee simple title that may be terminated upon the occurrence or nonoccurrence of
a specified event. Two categories of defeasible fee estates exist: fee simple determinable and fee simple on condition
subsequent.
C. Making documents that affect property ownership readily available as matters of public record.
D. a flat, horizontal reinforced concrete area, usually the interior floor of a building but also an exterior or a roof area
,6. Industrial
A. 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
B. warehouses, factories, land in industrial districts, and power plants.
C. The principle that states that excess profits generate competition.
D. the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and
charges
7. sill
A. a written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The
transferee then has the original payee's right to payment.
B. the lowest horizontal member of the house frame; also on a window or door
C. a standardized conventional loan that meets Fannie Mae or Freddie Mac's requirements; made by for-profit lenders
and are not insured by the federal gov't to the most creditworthy borrowers.
D. offer to purchase
8. Consideration
A. That received by the grantor in exchange for a deed. Something of value that induces a person to enter into a legally
enforceable contract.
B. dual legal personality
C. the final inspection of the property by the buyer prior to closing to assure that the seller has vacated, made required
repairs, and delivered the property in the condition it was in at contact.
D. A concurrent form of ownership of real estate between two or more parties who have been named in one conveyance
as joint tenants. Ownership interest may be unequal. Right of survivorship is not automatic in NC but can be added by an
attorney.
9. Cooperation brokers
A. Broker
B. holds that the landlord is liable for injuries that occur in common areas (hallways, stairways, elevators, sidewalks, and
parking lots) when the landlord negligently failed to maintain safe conditions in those areas.
C. those who act as subagents of the principal
D. gives the purchaser information about the exact location and size of the property
10. graduate lease
A. holds that the landlord is liable for injuries that occur in common areas (hallways, stairways, elevators, sidewalks, and
parking lots) when the landlord negligently failed to maintain safe conditions in those areas.
B. Reference to linear measurements and compass directions.
C. a lease that provides for increases in rent to occur at set future dates; often used in the rental of office space for
multiple-year terms. Also called a step-up lease.
D. A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder's
right as a tenant to an individual apartment.
11. partially amortized fixed-rate mortgage
A. when agents who have actual knowledge of a material fact deliberately misinform a buyer, seller, tenant, or landlord
concerning such fact.
B. An area zoned strictly for aesthetic or appearance considerations
, C. Encumbrances on real property. AKA: covenants, conditions, restrictions. A private agreement placed in public record
that affect the use of the land.
D. a loan in which the monthly principal and interest payments are a constant amount, but that payment amount is not
sufficient to completely pay off the loan within the loan term; balloon payment due at maturity
12. Building Permit
A. Written governmental permission for the construction, alteration, or demolition of an improvement, showing
compliance with building codes and zoning ordinances.
B. The right to or ownership of the land.
C. the vertical members in the wall framing; usually placed 16-24 inches apart and serve as main support for the roof
and/or the story above
D. A condensed history of a title.
13. purchase-money mortgage
A. a concrete support under a foundation, chimney. or column that usually rests on solid ground and is wider than the
structure being supported
B. a loan in which the monthly principal and interest payments are a constant amount, but that payment amount is not
sufficient to completely pay off the loan within the loan term; balloon payment due at maturity
C. a note secured by a mortgage or deed of trust given by a buyer as a borrower, to a seller, as lender, as part of the
purchase price of the real estate.
D. a loan insured by the FHA and made by an approved private lender according to FHA's regulations
14. Ginnie Mae
A. a gov't agency under HUD that sells mortgage-backed securities that are backed by pools of FHA and VA loans
B. An oral or written contract in which the parties state the contract's terms and express their intentions in words.
C. A charge against property that provides security for a debt or an obligation of the property owner.
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
15. tax-deferred exchange
A. a mortgage loan in which the lender, in exchange for a loan with a lower interest rate, participates in the profits (if any)
the borrower receives when the property is eventually sold.
B. 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
C. An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.
D. A transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets
certain requirements, a taxpayer can postpone reporting such income until future years.
16. Monuments
A. Any right to occupy a unit of real property during five or more separated time periods over a period of at least five
years. 5 day cancellation (without penalty) 10 days developer keeps money in trust; 30 days to refund; $500 fine to
developer
B. Arrangement where consumer asks licensee to perform specific real estate services for a set fee; unbundling of
services; limited service firms.
C. a mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the
Dept. of Veterans Affairs to limit the lender's possible loss.
D. Fixed objects used to establish real estate boundaries. Ex.: stones, trees, lakes, streets, markers placed by
surveyors.
