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Modern Real Estate Quiz AnswerKey
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Modern Real Estate Quiz AnswerKey
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. Chain of Title
A. A type of contract in which both parties promise to do or refrain from doing something; one promise is exchanged for
another. "I will do this and you will do that"
B. A notice that there is and action or lawsuit pending that may adversely affect the title.
C. The record of ownership of property over a period of time.
D. the right to use and possess the property as if one owns it and to demand the return of the legal title when the debt is
repaid.
2. Legal description
A. Residential, Commercial, Industrial, Agricultural, Special purpose.
B. the exact way of describing real estate in a contract, deed, mortgage or another document.
C. offer to purchase
D. 1)term 2)promise to pay 3)signature of the borrower(s)
3. curable physical deterioration
A. law used to regulate underground storage tanks' discharge of any hazardous substance, including gas and oil.
B. a reduction in a property's value resulting from a decline in physical condition; repairs that are physically possible and
economically feasible and will result in an increase in appraised value. Ex: Roof replacement, painting
C. The State law of descent that dictates distribution of the real and personal property of the deceased that died without
a will.
D. A person's present right to an interest in real property that will not result in possession or enjoyment until someone in
the future, such as a reversion or right or reentry.
4. Freehold Estates
A. An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.
B. also known as a "contract for deed", it is seller financing whereby the purchase price is paid in periodic installments
by purchaser. The seller retains legal ownership, while the buyer secures possession of and an equitable interest in the
property.
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. A flexible moment in time when conversation between a licensee an a consumer begins to address confidential
needs, desires and abilities; latest moment to legally disclose agency choices to a consumer.
5. reality of consent
A. expenses that have already been paid by the seller prior to closing and the buyer needs to rebate that portion to the
seller; generally real estate taxes or HOA dues.
B. The concept of land ownership that includes ownership of all legal rights to the land, i.e.. Disposition, exclusion,
enjoyment, possession and control.
C. If misrepresentation, fraud, mistake of fact, undue influence or duress are absent in contract formation, good contract
is formed.
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.
,6. Civil Rights Act of 1866
A. An area zoned strictly for aesthetic or appearance considerations
B. Federal Act that prohibited any type of discrimination based on race in the sale or rental of real property.
C. 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.
D. The reversion of property to the state in cases where a person dies intestate.
7. Townhouse Ownership
A. 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.
B. a sale in which both the selling agent and the listing agent are from the same firm.
C. Do own land underneath unit (footprint) can not stack units vertically; no cancellation period; own entire unit (and half
of party wall); Common areas owned by Homeowners association
D. An easement acquired for a public purpose through the power of eminent domain.
8. Protected Classes
A. maximum amount of security deposit if tenancy is from week to week
B. Race, Color, Religion, National Origin, Sex, Handicapped, Familial Status
C. 10 day period after the auction in which the borrower can try to raise the necessary funds to redeem the property.
D. The tract over which an easement runs.
9. Personal Property or Personality
A. Something that is not covered for loss in an insurance policy.
B. Items, called chattels, that do not fit into the definition of real property; movable objects like; furniture, clothing,
jewelry, money, vehicles, etc.
C. a loan made to finance the construction of improvements on real estate--homes, apartments, office buildings
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.
10. equitable title
A. the right to use and possess the property as if one owns it and to demand the return of the legal title when the debt is
repaid.
B. a person who retains possession of leased property after the lease has expired; the landlord may continue to accept
rent or start eviction procedures.
C. the bottom of the wall frame that connects the studs to the flooring
D. determines the amount of the gain realized from a sale of real property
11. Freddie Mac
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 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.
C. a corporation established to purchase primarily conventional mortgage loans in the secondary market
D. ratio of debt to value of the property
12. Federal Fair Housing Act
, A. Gradual recession of water which uncovers land that usually belongs to the riparian owner.
B. Prohibits creditors from discrimination on the basis of race, color, religion, national origin, sex, marital status, age, and
receipt of public assistance.
C. Undesirable physical or design features that can't be remedied easily are considered functionally obsolete. ex: home
w/ 5 bedrooms & 1 bath
D. Federal law that prohibits discrimination based on familial status, race, sex, handicap, color, religion, national origin.
(FRESH CORN)
13. closing statement
A. this act governs residential leases and landlord-tenant relationships; its purpose is to ensure that only habitable
residential unties are rented. Does not apply to hotels, motels, rent-free or commercial properties.
B. a written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and
other liens under certain circumstances.
C. 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.
D. a column, usually of masonry block or steel-reinforced concrete; bears wall weight.
14. percentage lease
A. The process by which the power of eminent domain is exercised.
B. 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.
C. refers to the presence of one or more individuals who have not reached the age of 18 and who live with either a
parent or legal guardian. The term also includes a woman who is pregnant.
D. the slope of a roof measured as the vertical distance in inches (rise) divided by the horizontal distance in feet (run)
15. Lateral Support
A. Money damages awarded to the injured party to compensate them for the breach of contract, but not to punish the
breaching party.
B. The support a parcel of land receives from adjacent land; a neighbor's duty to support adjoining land in its natural
state.
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 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.
16. landfill
A. A declaration of limitations established by a developer.
B. An enormous hole to store hazardous materials, lined to prevent leakage of waste materials; includes underground
drainage pipes to monitor for leaks and leaching
C. Estimate of the quantity, quality or value of something.
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.
17. There is no federal exemption to the Fair Housing act if a _____ is involved.
A. an increase in the loan balance.
B. Broker
, 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 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.
18. Master Plan
A. The primary method by which local governments recognize development goals.
B. The quality or state of being heterogeneous.
C. A lender in a deed of trust loan transaction; the recipient of personal property in a will
D. Written governmental permission for the construction, alteration, or demolition of an improvement, showing
compliance with building codes and zoning ordinances.
19. Life Tenant
A. A person in possession of a life estate.
B. AKA easement by implication of law, because all owners must have rights of ingress to and egress from their land.
C. Residential, Commercial, Industrial, Agricultural, Special purpose.
D. Deed that is used when a borrower has defaulted on the mortgage loan and wants to avoid a foreclosure action.
20. Express Agreement/Contract
A. Substituting a new contract for an old one or substituting new parties to an existing contract.
B. An oral or written contract in which the parties state the contract's terms and express their intentions in words.
C. 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.
D. A decree issued by a court.
21. British Thermal Unit (BTU)
A. A measure of heat used in rating the capacity of heating and cooling systems. (BTU)
B. when agents who have actual knowledge of a material fact deliberately misinform a buyer, seller, tenant, or landlord
concerning such fact.
C. natural water level whether it is above or below ground level
D. 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.
22. prepaid items
A. expenses that have already been paid by the seller prior to closing and the buyer needs to rebate that portion to the
seller; generally real estate taxes or HOA dues.
B. Prevents the borrower from letting someone assume the debt without the lender's approval.
C. 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
D. An item of personal property that has been converted to real property by being permanently affixed to the realty.
23. rafter
A. The Open, Continuous, Exclusive, Adverse, Notorious possession of another's land under a claim of title. Possession
for a statutory period of 20 years in North Carolina may be a means of acquiring title.
B. Immobility, indestructibility, uniqueness
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