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Modern Real Estate Quiz AnswerKey & max Questions 678
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Modern Real Estate Quiz AnswerKey & max Questions 678
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. water table
A. 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.
B. Scarcity, Location, Improvements, & Permanence of investment. aka SLIP
C. Prevents the borrower from letting someone assume the debt without the lender's approval.
D. natural water level whether it is above or below ground level
2. 10 reasons for terminating an easement
A. Uniform Settlement Statement; the standard closing statement form required to be given to the borrower, lender, and seller at or before settlement by the closing agent in a transaction
covered under RESPA.
B. Owner's title insurance policy that protects the owner against title defects not found in public records.
C. 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.
D. 1)no longer exist 2)easement holder becomes owner 3)release right 4) abandonment 5)non-use of prescription 6) adverse possession 7)demolition of a party wall 8)nonrecordation
9)lawsuit(quiet title) 10)residential easement converted to commercial purposes
3. deficiency judgment
A. Broker
B. defined as the land, everything that is permanently attached to the land (or goes with) the land
C. a personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full; a general lien
D. when principal and agent, without formally agreeing to the agency, act as if one exists.
4. time is of the essence
A. A Federal Act that facilitates accessibility and mobility by ramp construction, safety rails, wider doors, and other accommodations.
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. A dwelling(mobile home) built under HUD regulations with a permanent chassis. Considered personal property until moving hitch, wheels and axles are removed, the unit is attached to
a permanent foundation on land, and an affidavit is filed with the DMV.
D. The channeling of homeowners to particular neighborhoods based on the presence or absence of a protected class.
5. privity of estate
A. Often used to store petroleum, if leaking can contaminate groundwater, only 10% of tank needs to be underground to require monitoring
B. the lowest horizontal member of the house frame; also on a window or door
C. Immobility, indestructibility, uniqueness
D. rights arising from traditional property law
6. Easement by necessity
A. AKA easement by implication of law, because all owners must have rights of ingress to and egress from their land.
B. ratio of debt to value of the property
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. 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.
7. radon
A. A lease of property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential
leases are gross leases; also called fixed rental lease.
B. 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)
C. Radioactive odorless, tasteless gas; with long term exposure may cause lung cancer
D. 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
8. General Warranty Deed
A. This deed offers greater protection than any other deed, is the best deed for the grantee, but gives the grantor the greatest degree of liability.
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. an administrative fee charged to the borrower by the lender for making a mortgage loan; usually computed as a % of the loan amount.
D. Areas such as landscaped parks and playgrounds used to separate and screen residential areas from nonresidential areas
9. blockbusting or Panic Peddling
A. Loss of a right through undue delay or failure to assert it.
B. 1) One owner only 2) interest 100% 3) one signature only when sold unless a married person - spouse signs to extinguish elective share rights 4) marriage of an owner does not
automatically change to tenancy by entireties 5) heir ship rights
C. the practice of setting prices for products or services rather than letting competition on the open market establish them.
D. 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.
,10. Building Codes
A. 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.
B. NC requirements as to construction standards, with the primary purpose being safety.
C. Transfer of title, act of transferring property to another.
D. Words of conveyance
11. Statute of Frauds
A. A state law that requires that certain instruments that convey interest in real estate be in writing to be legally enforceable, such as deeds, real estate sales contracts, and certain leases.
B. Lien that is attached to real property as of the listing date.
C. 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.
D. Enabling Act
12. fascia board
A. Land at the coast between average high tide and average low tide this is owned by the state of North Carolina.
B. a flat strip of wood or metal that encloses the ends of the rafters; gutters are usually attached to it.
C. The support a parcel of land receives from adjacent land; a neighbor's duty to support adjoining land in its natural state.
D. A contract under which something remains to be done by one or more of the parties.
13. Foreshore
A. 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.
B. Land at the coast between average high tide and average low tide this is owned by the state of North Carolina.
C. Generated by movement of electrical currents; prolonged exposure may cause cancer; major concern for property owners near high voltage line
D. The time a buyer has to have property inspected, title examined, and review any leases to determine if the property meets his or her needs.
14. essentials of a valid lease
A. an administrative fee charged to the borrower by the lender for making a mortgage loan; usually computed as a % of the loan amount.
B. 1. Mutual agreement 2. Consideration 3. Capacity to Contract 4. Legal objectives
C. 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.
D. 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.
15. Incurable physical deterioration
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. This type of lien affects all the property of a debtor, both real and personal, rather than a specific parcel of real property
D. repairs to major structural components of a building, which deteriorate at different rates, may not be economically feasible. Ex: load-bearing walls and foundations
16. Grantor
A. the act of pledging real property as security for payment of a loan without giving up possession of the property.
B. The owner
C. A lease of property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential
leases are gross leases; also called fixed rental lease.
D. Regulates standards for real property taxation, standards for tax assessment and appraisal.
17. Nonconforming Use
A. Water that exists under earth's surface in tiny spaces or crevices in geological formations; if contaminated, threatens source of clean drinking water
B. 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
C. Real property uses that were legally established before adoption of current zoning plan, but have been "grandfathered".
D. made up of lenders that originate mortgage loans
18. wraparound loan
A. one who is empowered to do anything the principal could do personally
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. maximum amount of security deposit if tenancy is from week to week
D. enables a borrower who is paying off an existing mortgage to obtain additional financing from a second lender or the seller.
19. equilibrium
A. The point where supply and demand is balanced.
B. A dwelling consisting of a series of rooms or units built off-site according to the NC State Building Code; is considered real property as soon as it assembled on the land. May be multi-
storied
C. 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.
D. an agreement b/w property owner and possible buyer, secured by the payment of an option fee, to buy or not to buy property within a specific time period at negotiated terms.
20. Cooperative
, A. A dwelling consisting of a series of rooms or units built off-site according to the NC State Building Code; is considered real property as soon as it assembled on the land. May be multi-
storied
B. Owns a share of stock in the corporation and has a proprietary lease to the unit
C. the practice of setting prices for products or services rather than letting competition on the open market establish them.
D. The personal preference of people for one location over another, not necessarily based on objective facts and knowledge
21. Trade Fixture
A. gives an estimate of your settlement charges and loan terms if you are approved for your loan.
B. An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.
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. AKA easement by implication of law, because all owners must have rights of ingress to and egress from their land.
22. Special purpose
A. churches, schools, cemeteries, and government held lands.
B. poisoning caused by an elevated level of lead in the human body that can result in damage to the brain, nervous system, kidneys, and blood.
C. 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)
D. The interest or value that an owner has in property over and above any indebtedness.
23. Replacement cost
A. a loss of value in property due to any cause; an expense deduction for tax purposes taken over the period of ownership of income property
B. 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.
C. Owns a share of stock in the corporation and has a proprietary lease to the unit
D. exterior roofing material frequently made of fiberglass, asphalt, or wood
24. Title
A. The rental of rooms or units is exempt in an owner-occupied one-family to four-family dwelling.
B. The support a parcel of land receives from adjacent land; a neighbor's duty to support adjoining land in its natural state.
C. The right to or ownership of the land.
D. the leasing of premises by a tenant to a third party for part of the lessee's remaining term
25. sale-and-leaseback
A. A written instrument by which an owner of real estate intentionally conveys right, title, or interest in the parcel of real estate to another.
B. used as a means of financing large commercial or industrial plants; a transaction in which an owner sells improved property and, as part of the same transaction, signs a long-term
lease to remain in possession of the premises.
C. when trust funds and the firm/broker's personal/business funds are placed in the same account
D. farms, timberland, ranches, and orchards.
26. Market
A. Dwelling units owned by religious organizations may be restricted to people of the same religion if membership in the organization is not restricted on the basis of protected class.
B. A place where goods can be bought and sold and establish value
C. When a person dies without having left a will.
D. This deed offers greater protection than any other deed, is the best deed for the grantee, but gives the grantor the greatest degree of liability.
27. usury
A. The gradual wearing away of land by water, wind, or other natural forces; the diminishing of property by the elements may cause loss of ownership.
B. a flat, horizontal reinforced concrete area, usually the interior floor of a building but also an exterior or a roof area
C. charging interest in excess than the maximum rate established by state law.
D. The tract that benefits from an easement.
28. option to purchase
A. A person in possession of a life estate.
B. Agency responsible for designating flood hazard areas bordering rivers and streams.
C. The possible use of a property that would produce the greatest net income and thereby develop the highest value
D. an agreement b/w property owner and possible buyer, secured by the payment of an option fee, to buy or not to buy property within a specific time period at negotiated terms.
29. Equity
A. The interest or value that an owner has in property over and above any indebtedness.
B. The process by which the power of eminent domain is exercised.
C. laws that prohibit monopolies and contracts, combinations, and conspiracies that unreasonable restrain trade.
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
30. Designated duel agency
A. A loan made to a borrower with a credit rating below what is required for regular loans creating greater liability for the lender that is countered by higher interest rates and fees; called B,
C, or D paper.
B. Loss of a right through undue delay or failure to assert it.
, C. used when a transaction is an in-house sale (when one agent from firm X represents the buyer and another agent from firm X represents the seller)
D. Warranties
31. Real Estate Settlement Procedures Act (RESPA)
A. federal law that ensures that residential buyers and sellers receive full disclosure of all settlement charges; mandates HUD booklet about closing costs, a good-faith estimate of closing
costs, and hUD-1 closing statement.
B. 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.
C. Something that is not covered for loss in an insurance policy.
D. one who is authorized to represent the principal in only one specific act or business transaction
32. Executory Contract
A. The maximum possible estate in real property; most complete and absolute ownership; indefinite in duration, freely transferable and inheritable.
B. A contract under which something remains to be done by one or more of the parties.
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. The personal preference of people for one location over another, not necessarily based on objective facts and knowledge
33. Personal Property or Personality
A. Sealing off of disintegrating asbestos or chipping and peeling lead based paint; may be preferable to removal; still leaves hazard behind
B. The point where supply and demand is balanced.
C. The concept of land ownership that includes ownership of all legal rights to the land, i.e.. Disposition, exclusion, enjoyment, possession and control.
D. Items, called chattels, that do not fit into the definition of real property; movable objects like; furniture, clothing, jewelry, money, vehicles, etc.
34. Dual agency
A. A listing agreement under which the broker's commission is contingent on the broker personally producing a ready, willing, and able buyer before the property is sold by the seller or
another broker.
B. If misrepresentation, fraud, mistake of fact, undue influence or duress are absent in contract formation, good contract is formed.
C. when the broker/firm represents the buyer and the seller in the same transaction
D. story-high space below the first floor; floor is usually concrete slab
35. Contract
A. An easement that is annexed to the ownership of one parcel of land and used for the benefit of another parcel of land. The easement "runs with the land"
B. 1) One owner only 2) interest 100% 3) one signature only when sold unless a married person - spouse signs to extinguish elective share rights 4) marriage of an owner does not
automatically change to tenancy by entireties 5) heir ship rights
C. A legally enforceable promise or set of promises between legally competent parties.
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.
36. Zoning powers are conferred on municipal government's by NC's_______________ _____________ through the General Assembly.
A. the external underside of the eave; usually contains ventilation for the attic/roof
B. Refers to a transfer of rights or duties under a contract to a third party.
C. Enabling Act
D. A lender allows a borrower in default to sell the mortgage property for less money than necessary to satisfy the load to avoid the delay and expense of a foreclosure sale, the IRS
frequently consider the forgiven amount taxable income for the borrower.
37. power of sale foreclosure
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. The form of foreclosure used in a title theory state; also called a nonjudicial foreclosure.
C. A legally enforceable promise or set of promises between legally competent parties.
D. When a person dies without having left a will.
38. Negligent omission
A. modeled after the Residential Agreements Act, it establishes uniform rules for landlords, tenants, and their agents involved in the handling of short-term rentals under 90 days in length
where tenant has primary residence elsewhere.
B. The power of a good or service to command other goods or services in exchange. Also, the present worth of future benefits arising from the ownership of real property.
C. takes place when agents do not have actual knowledge of a material fact but should reasonably have known of such a fact.
D. the act of pledging real property as security for payment of a loan without giving up possession of the property.
39. law of negligence
A. An appraisal technique that determines assessed value for all lands in a given area by applying an overall percentage increase of decrease.
B. A personal interest in or right to use the land of another. The right to use is not attached to any ownership. (personal or commercial)
C. 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.
D. created when a property owner promises to give the contracting party the first chance to buy the property or to match the bona fide offer of a third party, should the owner decide to sell.
40. Marketable Title Act
A. offer to purchase
B. Provides that if a chain of title can be traced back for 30 years and no other claim has been recorded during that time the title become a marketable title.
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