MAINE STATE PRACTICE EXAM TEST 2024.

MAINE STATE PRACTICE EXAM TEST 2024. The most common manner in which to transfer risk in real estate property management is through the use of: A. indemnification agreements. B. insurance policies. C. hold harmless agreements. D. release of liability forms. - correct answer B. In risk management, the most common and effective manner in to transfer risk is by the use of insurance policies. The property owner pays a premium, and the insurance company takes on the liability for the occurrence of the insured event. Which of the following is NOT an element of the bundle of rights of an owner of property in fee simple absolute? A. The right to lease the mineral rights B. The right to encumber the property with an easement in gross C. The right to sell the air rights D. The right to start a foreclosure process - correct answer D. Answers A, B and C are all elements of the bundle of rights of an owner of property in fee simple absolute. The right to start a foreclosure belongs to a lender or someone who has a judgment against the owner of the property Which of the following would NOT be characterized as a physical characteristic of real estate? A. Heterogeneity B. Immobility C. Durability D. Permanence of Investment - correct answer D. Permanence of investment is an economic characteristic of real estate. Fee simple ownership describes: A. Future ownership. B. Current ownership. C. A leasehold estate. D. Current possession. - correct answer B. Current ownership Fee simple ownership describes current ownership. It is also known as fee simple absolute or ownership in fee. Which of the following is a publicly traded investment entity that pool money of investors who want to invest in real estate in markets around the country/world? A. REIT B. Deed in trust C. Deed of trust D. Trust account - correct answer A. REIT Ben and Jerry want to buy a principal place of residence, so they contacted Agent Sandy to show them houses. When looking for a home, Sandy would never represent Ben and Jerry as a: A. customer. B. dual agent .C. single agent. D. general agent. - correct answer D. General Agent A general agent represents a party in an on-going business relationship. Ben and Jerry and looking for a principal place of residence and this relationship is not expected to be on-going. Express agency is created by: A. an oral or written agreement between the parties. B. a contract between the parties. C. state laws that allow agency relationships. D. federal laws that allow agency relationships - correct answer A. An oral or written agreement between parties.