TN Exam Prep Quiz
Circle the letter of the Answer that corresponds to the displayed Question.
1. Without legal force or effect; unenforceable and null, such as an illegal contract. Results when illegal purpose, operations of law prevents, acts of nature.
A. pur autre vie
B. = 10 acres
C. broker's opinion of value
D. void
2. A will prepared entirely in the testator's handwriting, complete with date and signature.
A. holographic will
B. redemption period / equity of redemption
C. appraiser
D. executor to convey decedent's estate
3. Immobile, Industructible, Heterogeneous (unique)
A. Characteristics of land
B. private grant
C. "discrimination in housing
D. potential gross income
4. Licensee is responsible for paying judgement"
A. Deed Restriction
B. yield
C. offer and acceptance
D. Real Estate Education and Recovery Account
5. Any financing arrangement where a seller takes a note and mortgage from the buyer for all or part of the purchase price of the property.
A. facilitator / transaction broker
B. Regulation Z
C. allocation of markets
D. seller financing
6. An amount of money allocated from a property's income to cover future repair and maintenance costs.
A. reserve allowance
B. highest and best use
C. township
D. asset sale
7. A sale of a property executed simultaneously with a leaseon the property from the buyer back to the seller as tenant.
A. title records
B. counteroffer
C. sale leaseback
D. public grant
8. That portion of a property's value owned by the legal owner, expressed as the difference between the property's market value and all loan balances
outstanding on the property.
A. equity
B. loan-to-value ration (LTV)
C. superior lien
D. courts case law
9. An advertisement that does not contain the identity of the advertiser.
A. general lien
B. taxable income
C. blind ad
D. water rights
10. A completed agreement which enjoins one or both principal parties to perform certain actions in order for the contract to become fully executed. Pending
sale.
A. life estate
B. law of agency
, C. executory contract
D. contingency
11. A contract where both parties promise to perform in exchange for performance by the other party.
A. bilateral contract
B. leasehold estate
C. fixture
D. depreciable basis
12. Anticompetitive behavior - collusion, price fixing, bid rigging, exclusive dealing, etc."
A. closing
B. broker
C. mortgage financing
D. Anti Trust laws
13. Services that differ in nature or quality from those normally rendered, with the alternation based on race, color, sex, national origin, or religion.
A. listing
B. discounting
C. certificate of title
D. unequal services
14. A court proceeding triggered by a foreclosure suit. Involves notice, debt acceleration, the termination of the owner's interests in the property, and a public
sale where proceeds are applied to the debt.
A. judicial foreclosure
B. strict foreclosure
C. operating expense
D. customer
15. The party in an agency relationship who is hired by the principal to perform certain duties. In so doing, the agent must also uphold fiduciary duties owed to
the principal.
A. reversion
B. agent
C. price fixing
D. suit for possession
16. A creditor;s claim against real or personal property as security for a property owner's debt. A lien enables a creditor to force the sale of the property and
collect proceeds as payment toward the deb.
A. color of title
B. demand
C. lien
D. facilitator / transaction broker
17. The discounted value of an amount of money to be received in the future that accounts for the interest that would h ave been earned if the money had been
received in the present.
A. present value
B. Federal National Mortgage Association (Fannie Mae)
C. bilateral contract
D. License Penalties
18. A listing which states a minimum sale or lease price the owner will accept, with any excess going to the broker as a commission. Professionally discouraged,
if not illegal.
A. classifications of real estate by use in Tennessee
B. implied contract
C. net listing
D. recording
19. "A transfer of title to real property by voluntary or involuntary means. Voluntary- public grant, deed, will;Involuntary - descent, escheat, foreclosure, eminent
domain, adverse possession, estoppel"
A. alienation
B. Warrant of encumbrances
C. fixture
D. mortgage financing
20. An estate in real property owned by a single party.
A. unilateral contract
B. tenancy in severalty
, C. Implied Agency
D. ethics
21. Expenditure to purchase an asset with the expectation of deriving a future profit or benefit from the asset.
A. net operating income
B. datum
C. investment
D. private mortgage insurance (PMI)
22. An opinion of value of a property developed by a professional and disinterested third party and supported by data and evidence.
A. appraisal
B. power of attorney
C. deed in lieu of foreclosure.
D. conversion
23. Contains the conveyance intentions; names the parties; describes the property; indicates nominal consideration. (the only required clause)
A. granting clause, or premises clause for deed
B. performance
C. escheat
D. credit evaluation
24. Actual or recorded public evidence of real property ownership.
A. exclusive agency
B. notice of title
C. home equity loan
D. income capitalization
25. A trust in which a truster conveys a fee estate to a trustee and names himself or herself as beneficiary. The beneficiary in turn controls the property and the
actions of the trustee.
A. annual percentage rate (APR)
B. equity
C. land trust
D. quiet title suit
26. A real property's annual tax levied by taxing entities according to the property's assessed value.
A. present value
B. Dual Agency
C. surface rights
D. ad valorem tax
27. A widower's (husband) life estate claim to portions of his deceased spouse's (wife) real property. Not in Tennessee.
A. curtesy
B. general warranty deed
C. customer
D. variance
28. A theoretical use of a property that is legally permissible, physically possible, financially feasible, and maximally productive, usually in terms of net income
generation.
A. non-conforming use
B. highest and best use
C. involuntary alienation
D. Property Condition Disclosure Form
29. TREC - Any person engaged under contract by or on behalf of a licensed broker to participate in any activity included in subdivision.
A. pur autre vie
B. affiliate broker
C. exclusive right to sell
D. qualification
30. Establish standards for protecting interests of handicapped people."
A. constructive notice
B. alienation
C. Federal laws
D. = 5,280 ft. or 640 acres
, 31. A fiduciary relationship which authorizes the agent to conduct a broad range of activities for principal in a particular business enterprise. May or may not
include authority to enter into contracts.
A. broker
B. property management / managers
C. equalization
D. general agency
32. A method used by brokers and sales people for estimating the current value of a property using sale price data from similar properties. Not to be confused
with a bona fide appraisal performed by a licensed appraiser
A. facilitator
B. limited partnership
C. comparative market analysis (CMA)
D. seller's market
33. An opinion of the price at which a willing seller and buyer would trade a property at a given time, assuming a cash sale, reasonable exposure to the market,
informed parties, marketable title, and no abnormal pressure to transact.
A. market value
B. loan commitment
C. enforceability
D. business brokerage
34. Title 66 "Property" requires the seller's written summary of the property's condition at the time of contracting for sale. Required by owners of single family
homes and buildings containing 1-4 dwelling units. Agents responsibility but seller completes a
A. acceleration
B. Property Condition Disclosure Form
C. sole proprietorship
D. specific lien
35. An exemption of a portion of the assessed value of a homeowner's principal residence from ad valorem taxation.
A. estoppel
B. proration
C. survey
D. homestead tax exemption
36. An increment of value addd by the assemblage of continuous properties.
A. plottage
B. asset sale
C. involuntary alienation
D. Warrant of encumbrances
37. An accounting entry on a closing statement indicating an amount a party must pay.
A. strict foreclosure
B. pur autre vie
C. asset
D. debit
38. A life estate where the grantee's interest endures over the lifetime of another party named by the grantor. i.e., when someone can't care for themselves and
they have a caregiver.
A. littoral rights
B. pur autre vie
C. life estate
D. land use control
39. A situation in which the loan balance of an amortizing loan increases because periodic payments are insufficient to pay all interest owed for the period.
Unpaid interest is added to the principal balance.
A. convey co-owned property
B. negative amortization
C. tier
D. oral vs. written contracts
40. The difference between the net sales proceeds of an asset and its adjusted basis.
A. contingency
B. capital gain (or loss)
C. exclusive right to sell
D. Real Estate Education and Recovery Account
