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Modern Real Estate Quiz QAs questions and answers | accurate and verified with rationales | updated 2024 | graded A+ | guaranteed pass$7.99
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Modern Real Estate Quiz
Circle the letter of the Answer that corresponds to the displayed Question.
1. Business Cycle
A. A tenant's right to occupy real estate during the term of a lease, generally considered a personal property interest;
nonfreehold estate.
B. 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
C. the return or profit on a loan
D. The upward and downward fluctuations in business activities generally characterized by four stages: expansion,
recession, depression, and revival
2. balloon payment loan
A. 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
B. 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.
C. a mortgage loan that includes a final payment that is larger than the required periodic payments because the loan
amount was not fully amortized.
D. the overhand of a sloping roof that extends beyond the walls of the house.
3. Legally Competent Parties
A. illegal eviction of a tenant that has exercised protected rights under the law.
B. People who are recognized by law as being able to contract with others; those of legal age and sound mind; a
requirement of a legal enforceable contract.
C. Typically a small amount of compensation, usually paid up front by the buyer/client when the buyer-agency
agreement is established.
D. 10 day period after the auction in which the borrower can try to raise the necessary funds to redeem the property.
4. Total Circumstances Test
A. maximum amount of security deposit if tenancy is longer than month to month.
B. People who are recognized by law as being able to contract with others; those of legal age and sound mind; a
requirement of a legal enforceable contract.
C. A legal test applied by the courts to determine whether an item is a fixture (and. therefore, part of the real property) or
personal property.
D. 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.
5. Octennial reappraisal
A. Making documents that affect property ownership readily available as matters of public record.
B. insurance provided by a private carrier that protects a lender against a loss in the event of a foreclosure and
deficiency
C. The reappraisal process based on a statutory schedule of every eight years.
D. Lien that is attached to real property as of the listing date.
,6. Oral buyer agency
A. 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
B. covers more than one parcel of land and usually is used to finance subdivision developments, though it can be used
to finance the purchase of improved properties as well
C. an agency option a firm may use when the consumer is willing to commit to an exclusive written buyer agency
relationship.
D. A charge against property that provides security for a debt or an obligation of the property owner.
7. Functional obsolescence incurable
A. A conditional transfer or pledge of real estate as security for the payment of a debt. Also the document creating a
mortgage lien in a lien theory state.
B. gives an estimate of your settlement charges and loan terms if you are approved for your loan.
C. Undesirable physical or design features that can't be remedied easily are considered functionally obsolete. ex: home
w/ 5 bedrooms & 1 bath
D. a loan that includes not only the real estate, but also all fixtures and appliances installed on the premises; has been
used extensively in financing furnished condo units
8. void contract
A. A conveyance that carries the warranty that the property was unencumbered by the grantor.
B. An area zoned strictly for aesthetic or appearance considerations
C. A contract that has no legal force or effect. It is unenforceable in a court of law b/c it does not meet the essential
elements of a contract.
D. natural water level whether it is above or below ground level
9. covenant of quiet enjoyment
A. One broker is appointed as sole agent of the seller and is given the exclusive right, or authorization, to represent the
property in question
B. Under this covenant, the lessor guarantees that the lessee may take possession of the leased premises and that no
one, including the landlord, will interfere with the tenant's possession or use of the property.
C. regulates the amount of money that be required as a security deposit and what the landlord can do with that deposit
D. The right to use the land of another for a particular purpose.
10. Easement by condemnation
A. A clause in insurance policies covering real property that requires that the policyholder maintain fire insurance
coverage generally equal to at least 80 percent of the property's actual replacement cost.
B. 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.
C. The capacity to satisfy future owners needs and desires; how future owners can make good use of the property.
D. An easement acquired for a public purpose through the power of eminent domain.
11. fixed rental lease
A. A measure of heat used in rating the capacity of heating and cooling systems. (BTU)
B. the tenant's obligation to pay a fixed rental amount, and the landlord pays all taxes, insurance premiums, mortgage
payments, repair costs; also called a gross lease.
C. Immobility, indestructibility, uniqueness
D. 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.
, 12. loan origination fee
A. uses the three-party deed of trust instrument as security for the mortgage debt; the borrower conveys legal title to a
trustee to hold for the lender until the debt is paid off. NC uses this theory.
B. a mortgage loan that includes a final payment that is larger than the required periodic payments because the loan
amount was not fully amortized.
C. a corporation established to purchase primarily conventional mortgage loans in the secondary market
D. an administrative fee charged to the borrower by the lender for making a mortgage loan; usually computed as a % of
the loan amount.
13. Covenant
A. Instrument made by a property owner to convey title to real and personal property on the owner's death
B. Warranties
C. Illegal eviction practices used by landlords instead of lawful use of summary ejectment.
D. Written governmental permission for the construction, alteration, or demolition of an improvement, showing
compliance with building codes and zoning ordinances.
14. Highest and best use
A. The possible use of a property that would produce the greatest net income and thereby develop the highest value
B. A legal action to compel a party to carry out the terms of a contract.
C. five
D. Words of conveyance
15. Flood Hazard Area
A. An improper use or abuse of a property by a possessor who holds less than fee ownership, such as a tenant, life
tenant, mortgagor, or vendee. Such waste ordinarily impairs the value of the land.
B. Estimate of the quantity, quality or value of something.
C. 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.
D. Areas designated by FEMA as being prone to flooding.
16. Metes-and-bounds description
A. Uses boundaries and measurements of the land.
B. Radioactive odorless, tasteless gas; with long term exposure may cause lung cancer
C. A contract that has no legal force or effect. It is unenforceable in a court of law b/c it does not meet the essential
elements of a contract.
D. The quality or state of being heterogeneous.
17. Agent
A. repairs to major structural components of a building, which deteriorate at different rates, may not be economically
feasible. Ex: load-bearing walls and foundations
B. An item of personal property that has been converted to real property by being permanently affixed to the realty.
C. The home is owned by an individual (not 3 or more/not sell more than 1 every 2 years.
D. one who represents the interest of another person.
18. Antitrust laws
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