Perry Real Estate College Final Exam
Questions With Verified Answers
A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence - answer✔functional obsolescence
In order to be a License member of the commission, a person must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker - answer✔all of the above
A licensed real estate professional acting as a point of contact between two or more people in
negotiating the sale, rental, or purchase of a property is known as a(n)
-sales affiliate
-property manager
-appraiser
-broker - answer✔broker
A landowner constructed a building 7 stories high. Several years later the municipality changed
the zoning ordinance, prohibiting buildings that exceed 6 stories in height. Which of the
following is true regarding the existing 7-story building?
-the owner must obtain a variance
-the building must be demolished - answer✔it is a nonconforming use
All of the following should be a consideration in selecting a tenant for the property EXCEPT
-size of the available space relative to the tenant's requirements
-compatibility of the tenant's business with those of other tenants
-tenant's ability to make the rental payments
-Ethnic background of the tenant and his or her employees - answer✔Ethnic background of the
tenant and his or her employees
A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien. - answer✔specific lien
All of the following are prohibited under the antitrust laws EXCEPT
-Competing property management companies agreeing to standardized management fees
-competing brokers allocating markets based on the value of homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a broker because of the fees that
broker charges - answer✔a broker's setting a company commission schedule
A rancher owns a parcel of land on which oil was discovered. If the rancher has not previously
conveyed the oil rights, who owns the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
Abel and Baker are joint tenants. Baker sells his interest to Charlie. What is the relationship of
Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest - answer✔they are tenants in
common
All of the following would be acceptable as evidence of marketable title EXCEPT
-a property owner's warranty deed
-an abstract and legal opinion
-Torren's certificate
-a title insurance policy - answer✔a property owner's warranty deed
The method of describing land that uses degrees, feet, and monuments is known as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - answer✔metes and bounds system
which of the following is true regarding a special warranty deed?
-The grantors warranties are limited to the time the grantor owned the property
-the grantor retains an interest in the ownership
-the grantor is making additional warranties beyond those given in a warranty deed
-the grantor is warranting that non encumbrances exist against the property - answer✔The
grantor's warranties are limited to the time the grantor owned the property
If an owner takes his property off the market for a definite period in exchange for some
consideration but grants an individual the right to purchase the property within that period for
a stated price, this is called a(n)
-contract of sale
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