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Modern Real Estate Quiz AnswerKey updated.
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Modern Real Estate Quiz AnswerKey updated.
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. Aesthetic Zoning
A. Ownership rights in a parcel of real estate to the water, minerals, gas, oil, and so forth that lie beneath the surface of
the property.
B. The support a parcel of land receives from adjacent land; a neighbor's duty to support adjoining land in its natural
state.
C. An area zoned strictly for aesthetic or appearance considerations
D. a flexible payment plan that allows a mortgagor to make lower monthly payments for the first few years of the loan
and larger payments for the remainder of the term.
2. Exclusion
A. A legally enforceable promise or set of promises between legally competent parties.
B. Transfer of title, act of transferring property to another.
C. Something that is not covered for loss in an insurance policy.
D. When a person dies without having left a will.
3. package loan
A. the leasing of premises by a tenant to a third party for part of the lessee's remaining term
B. a loan that includes not only the real estate, but also all fixtures and appliances installed on the premises; has been
used extensively in financing furnished condo units
C. One who acts as an intermediary on behalf of others for a fee or commission; licensed to list, lease, buy, exchange,
auction, negotiate or sell interest in real estate for others for a fee
D. A right, a privilege, or an improvement belonging to , and passing with, the land.
4. installment sale
A. A transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets
certain requirements, a taxpayer can postpone reporting such income until future years.
B. A condensed history of a title.
C. takes place when agents do not have actual knowledge of a material fact but should reasonably have known of such
a fact.
D. a column, usually of masonry block or steel-reinforced concrete; bears wall weight.
5. Agent
A. Department of Housing and Urban Development. Enforces the Federal Fair Housing Act.
B. Land at the coast between average high tide and average low tide this is owned by the state of North Carolina.
C. the document that pledges the property to the lender as security or collateral for a debt; also called mortgage.
D. one who represents the interest of another person.
6. Eminent Domain
, A. gives an estimate of your settlement charges and loan terms if you are approved for your loan.
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. The effort that began a chain of events that brings about the desired result. Under an open listing, the broker who is
the procuring cause of the sale receives the commission.
D. Power of certain agencies to take private property for public use through a suit for condemnation.
7. subordination agreement
A. a relationship in which the agent is placed in the position of trust and confidence to the principal.
B. Transfer of title, act of transferring property to another.
C. a written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and
other liens under certain circumstances.
D. churches, schools, cemeteries, and government held lands.
8. short-term capital gain
A. A listing based on the net price the seller will receive if the property is sold; broker can offer property at highest price
to increase the commission.
B. a heavy horizontal board, set on edge at the apex of the roof, to which the rafters are attached
C. profits from assets owned for 12 months or less
D. Issued upon the satisfactory inspection of a structure; building is fit for occupancy and there are no building code
violations
9. assignment
A. A charge against property that provides security for a debt or an obligation of the property owner.
B. Special taxes levied on real estate for public improvements made to that real estate, such as sidewalks, street
lighting.
C. the primary duty of the land lord to supply fit and habitable premises to the tenant.
D. Refers to a transfer of rights or duties under a contract to a third party.
10. Oral buyer agency
A. An appraisal technique that determines assessed value for all lands in a given area by applying an overall percentage
increase of decrease.
B. 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.
C. a quasi-government agency established to purchase any kind of mortgage loans in the secondary mortgage market
from the primary lenders.
D. an agency option a firm may use when the consumer is willing to commit to an exclusive written buyer agency
relationship.
11. success fee
A. 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.
B. Issued upon the satisfactory inspection of a structure; building is fit for occupancy and there are no building code
violations
C. Words of conveyance
D. Due and payable by the buyer/principal on the signing and acceptance of an offer to purchase property found by the
buyer's agent.
,12. closing statement
A. also called a "term loan", it only calls for periodic payments of interest.
B. made up of lenders that originate mortgage loans
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. the consummation of the real estate transaction; the point at which ownership of a property is transferred in exchange
for the selling price; also called settlement
13. Freehold Estates
A. An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.
B. The personal preference of people for one location over another, not necessarily based on objective facts and
knowledge
C. For the life of another. A life estate pur autre vie is a life estate that is measured by the life of a person other than the
grantee.
D. written promise to repay a debt in definite installments with interest.
14. Cloud on the Title
A. Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the
current zoning laws.
B. A defect on a deed that is frequently cured by a quitclaim deed.
C. A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties.
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.
15. tax-deferred exchange
A. A non-warranty deed that provides the grantee with the least protection of any deed. It carries no covenant or
warranties and conveys only such interest, if any, that the grantor my have when the deed is delivered.
B. 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.
C. an IRS sanctioned method for real estate investors to defer taxation of capital gains by making a property exchange
rather than by selling the investment property
D. The yield that an investor will demand for the investment of capital. This is the rate of return.
16. Topographic survey
A. A survey that shows the lay of the land.
B. pieces of plasterboard, asbestos sheeting, compressed wood-wool, fiberboard, or other material placed between
walls and ceilings to protect the interior from heat loss.
C. The period during which property is expected to remain useful for its original intended purpose.
D. Reference to linear measurements and compass directions.
17. consequential damages
A. A notice that there is and action or lawsuit pending that may adversely affect the title.
B. the extra thick framing over doors and windows to bear the weight of the building above the opening
C. Special damages that might be obtained if the damages upon breach were reasonably foreseeable to the breaching
party at the time of making the contract.
D. Estimate of the quantity, quality or value of something.
, 18. constructive eviction
A. Scarcity, Location, Improvements, & Permanence of investment. aka SLIP
B. dual legal personality
C. Items, called chattels, that do not fit into the definition of real property; movable objects like; furniture, clothing,
jewelry, money, vehicles, etc.
D. the doctrine that gives the tenant the right to cancel the remainder of the lease and vacate the premises w/o penalty if
the landlord fails to keep the premises fit.
19. statute of limitations
A. Undesirable physical or design features that can't be remedied easily are considered functionally obsolete. ex: home
w/ 5 bedrooms & 1 bath
B. exterior roofing material frequently made of fiberglass, asphalt, or wood
C. The law pertaining to the period of time within which certain actions must be brought to court or be lost.
D. 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
20. Chain of Title
A. A specific, involuntary lien filed when property owner has not paid for work of contractors, laborers, and others.
B. a loan insured by the FHA and made by an approved private lender according to FHA's regulations
C. The record of ownership of property over a period of time.
D. 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)
21. Agency
A. The concept of land ownership that includes ownership of all legal rights to the land, i.e.. Disposition, exclusion,
enjoyment, possession and control.
B. That received by the grantor in exchange for a deed. Something of value that induces a person to enter into a legally
enforceable contract.
C. the fiduciary relationship between the principal and the agent.
D. Scarcity, Location, Improvements, & Permanence of investment. aka SLIP
22. Real estate agents are obligated by licensing law and Commission rules to disclose all offers to
sellers immediately, but no later than ___ days from the date of the offer
A. 1)acceleration clause 2)prepayment penalty clause 3)due-on-sale clause
B. 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.
C. a flexible payment plan that allows a mortgagor to make lower monthly payments for the first few years of the loan
and larger payments for the remainder of the term.
D. five
23. First Substantial Contact
A. 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.
B. due diligence
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