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Modern Real Estate Quiz 200 questions and answers 2024
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Modern Real Estate Quiz 200 questions and answers 2024
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. Appurtenance
A. Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air
above it (air rights) or the minerals below the surface (subsurface rights).
B. A right, a privilege, or an improvement belonging to , and passing with, the land.
C. the taxable profit earned from the sale of real property
D. 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.
2. unilateral contract
A. An owner's rights in land that borders on or includes a steam, river, or lake. These rights include access to and use of
the water.
B. Federal law that requires federally chartered or insured lenders or provide buyers and sellers of 1-4 family homes,
coops, condos with info on all settlement costs
C. A type of contract in which one party makes a promise to induce a second party to do something. "I will give you a
reward if you find my dog"
D. Has all of the elements of a valid contract; however, neither party can sue the other to force performance; valid as
between the parties.
3. carbon monoxide
A. law used to regulate underground storage tanks' discharge of any hazardous substance, including gas and oil.
B. The support of the surface of land by the land's subsurface; duty of the owned of subsurface rights to support the
surface of the land.
C. Colorless, odorless poisonous gas produced as a by-product of incomplete combustion; can be dangerous if not
properly ventilate
D. Warranties
4. Grating Clause
A. allows senior citizens on fixed incomes to utilize the equity buildup in their homes by receiving regular monthly
payments from the bank
B. 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.
C. Words of conveyance
D. The point at which a metes and bounds description begins.
5. In-house sale
A. A title that is free of liens and encumbrances, defects, and protects purchaser from hazard of litigation and is
convincible legally significant.
B. the specific duties of the principal: loyalty, obedience, accounting, disclosure of information, and skill, care, and
diligence
C. a sale in which both the selling agent and the listing agent are from the same firm.
D. Substituting a new contract for an old one or substituting new parties to an existing contract.
,6. Mutual assent
A. A deliberate agreement between parties offer and acceptance; "meeting of the minds." A requirement of a legally
enforceable contract.
B. the fiduciary relationship between the principal and the agent.
C. A concurrent form of ownership reserved for property owned by husband and wife. Right of survivorship is mandatory;
making the surviving spouse owner in severalty immediately upon the death of a spouse.
D. Acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of
alluvial deposits along the banks of streams.
7. exclusive-agency listing
A. a charge for the use of borrowed money
B. One broker is specifically authorized to act as the exclusive agent of the principal; broker receives a commission if
any broker is procuring cause; seller can sell w/o obligation.
C. An official valuation of property for the purpose of establishing assessed value for tax purpose.
D. This type of lien affects all the property of a debtor, both real and personal, rather than a specific parcel of real
property
8. Agency
A. requires property owners to obtain a permit from the Coastal Resources Commission before participating in any
dredging or filling that may affect vegetation or aquatic conditions in NC waters or marshlands
B. implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit
C. the fiduciary relationship between the principal and the agent.
D. a conveyance from a landlord (an owner of real estate), to a tenant that transfers the right of possession and use of
the owner's property for a specified period of time.
9. Legal description
A. the exact way of describing real estate in a contract, deed, mortgage or another document.
B. A lien that is secured by a specific parcel of property and affects only that particular property
C. A claim, charge, or liability that attaches to and is binding on real estate.
D. A loan in which the mortgagor may pay a different amount for each installment, each payment consisting of a fixed
amount credited toward the principal plus an additional amount for the interest due since the last payment was made.
10. Nonfreehold (leasehold) Estates
A. the owner's initial cost for the real estate including closing expenses
B. systems to limit the source of environmental hazards and reduce their effect on humans and the surrounding
environment
C. A loan in which only interest is paid during the term of the loan, with the entire principal due with the final interest
payment; also called a straight loan.
D. A tenant's right to occupy real estate during the term of a lease, generally considered a personal property interest;
nonfreehold estate.
11. blockbusting or Panic Peddling
A. Real property uses that were legally established before adoption of current zoning plan, but have been
"grandfathered".
B. The act of encouraging people to sell or rent their homes by claiming that the entry of a protected class will have a
negative impact on property values.
C. 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.
D. The quality or state of being heterogeneous.
,12. acceptance
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. occurs when the offeree signs the offer without making any changes to it, thereby evidencing his acceptance and
willingness to be bound by and perform all terms of the offer.
C. states that a borrower with good payment history will have PMI canceled when he or she has built up equity equal to
20% of purchase price or appraised value.
D. A landowner's claim to use water in large navigable lakes and oceans adjacent to the property. The ownership rights
to land bordering these bodies of water up to the average high-water mark.
13. Americans with Disabilities Act (ADA)
A. the third party for whom some level of service is provided by an agent of another party, but who is not represented by
the agent
B. Warranties
C. 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
D. A Federal Act that facilitates accessibility and mobility by ramp construction, safety rails, wider doors, and other
accommodations.
14. consequential damages
A. provides that in addition to the rent, the tenant pays all or some of the property charges such as maintenance,
property taxes, and insurance; sometimes called a triple net lease.
B. a leasehold estate that continues for a definite period of time, whether for years, months, weeks, or days;
automatically terminates at the end of the lease period.
C. A loan in which only interest is paid during the term of the loan, with the entire principal due with the final interest
payment; also called a straight loan.
D. Special damages that might be obtained if the damages upon breach were reasonably foreseeable to the breaching
party at the time of making the contract.
15. Master Plan
A. Written governmental permission for the construction, alteration, or demolition of an improvement, showing
compliance with building codes and zoning ordinances.
B. The primary method by which local governments recognize development goals.
C. acronym used by commercial agents in a net lease that frequently refer to these charges: taxes, insurance, and
common area maintenance
D. the bottom of the wall frame that connects the studs to the flooring
16. HUD
A. federal law giving consumers the right to view and correct their credit information
B. 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.
C. the exact way of describing real estate in a contract, deed, mortgage or another document.
D. Department of Housing and Urban Development. Enforces the Federal Fair Housing Act.
17. footings
A. when principal and agent, without formally agreeing to the agency, act as if one exists.
B. Caused by factors outside the subject property & is not curable. ex: proximity to a polluting plant
, C. a concrete support under a foundation, chimney. or column that usually rests on solid ground and is wider than the
structure being supported
D. AKA easement by implication of law, because all owners must have rights of ingress to and egress from their land.
18. estate at will
A. provides that in addition to the rent, the tenant pays all or some of the property charges such as maintenance,
property taxes, and insurance; sometimes called a triple net lease.
B. a foreclosure under power of sale in which the deed of trust does not have to be foreclosed through a court action.
C. Use of a street address to describe property.
D. an estate that gives the tenant the right to posses property with the consent of the landlord of a term of unspecified or
uncertain duration.
19. Conditional-use Permit
A. When a particular property or group of properties is rezoned to permit a use different form the neighboring properties
use.
B. A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties.
C. NC law that requires many types of real estate documents to be recorded for protection against claims from third
parties.
D. Granted to a property owner who wishes to use property in a special way that is in the public interest such as a
church or hospital.
20. radon
A. the top part of the wall framing that connects the stud to the ceiling framing
B. This means that the contract must be performed within the time limit specified, and any party who has not performed
on time is liable for breach of contract.
C. The channeling of homeowners to particular neighborhoods based on the presence or absence of a protected class.
D. Radioactive odorless, tasteless gas; with long term exposure may cause lung cancer
21. encapsulation
A. Plants that do not require annual cultivation and are considered real property.
B. Sealing off of disintegrating asbestos or chipping and peeling lead based paint; may be preferable to removal; still
leaves hazard behind
C. The point at which a metes and bounds description begins.
D. The earth's surface, extending downward o the center of the earth and upward infinitely into space, including things
permanently attached by nature, such as trees and water
22. extender clause or Override Clause
A. 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.
B. The dollar amount required to construct an exact duplicate of the subject building at current prices. This is mostly
used when appraising historical homes.
C. when the broker/firm represents the buyer and the seller in the same transaction
D. interest paid in advance; one point equals 1% of the loan amount for the borrower and increases the yield for the
investor approximately 1/8%.
23. Marketable Title Act
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