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Modern Real Estate Quiz Q2 Verified and 100% Correct Q & A, Complete Document for Exam
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Modern Real Estate Quiz Q2 Verified and 100% Correct Q & A, Complete Document for Exam
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. Reference to a recorded plat
A. A claim, charge, or liability that attaches to and is binding on real estate.
B. A method of land description that uses lot and block numbers.
C. The relative ease of transfer of ownership rights from one person to another; often relates to clear title and
satisfactory physical condition.
D. The violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment
when it is due.
2. Consideration
A. That received by the grantor in exchange for a deed. Something of value that induces a person to enter into a legally
enforceable contract.
B. Required for each brokerage firm and branch office, the full broker responsible for displaying all licenses properly,
ensuring advertising is done properly, maintaining the trust account
C. Principal, Interest, Taxes, and Insurance
D. Caused by factors outside the subject property & is not curable. ex: proximity to a polluting plant
3. Incurable physical deterioration
A. A future estate that the grantor holds while granting a life estate to another person.
B. repairs to major structural components of a building, which deteriorate at different rates, may not be economically
feasible. Ex: load-bearing walls and foundations
C. the fiduciary relationship between the principal and the agent.
D. One broker is appointed as sole agent of the seller and is given the exclusive right, or authorization, to represent the
property in question
4. Quantity survey method
A. Estimate based on the quantities of raw materials needed to replace the subject structure as well as of the current
price of such materials & their installation costs.
B. Business property, including offices, shopping centers, stores, theaters, hotels and parking facilities.
C. The home is owned by an individual (not 3 or more/not sell more than 1 every 2 years.
D. someone who preserves the value of an investment property while generating income as an agent for the owner.
5. satisfaction of mortgage
A. The legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions.
B. interest paid in advance; one point equals 1% of the loan amount for the borrower and increases the yield for the
investor approximately 1/8%.
C. a document acknowledging the full repayment of a mortgage debt
D. cost of any physical capital improvements that add value to the property or prolong its life (added to the cost basis)
6. adjusted basis
, A. The support of the surface of land by the land's subsurface; duty of the owned of subsurface rights to support the
surface of the land.
B. a loss derived from the sale of real property that may be deductible from ordinary taxable income.
C. Any right to occupy a unit of real property during five or more separated time periods over a period of at least five
years. 5 day cancellation (without penalty) 10 days developer keeps money in trust; 30 days to refund; $500 fine to
developer
D. cost of any physical capital improvements that add value to the property or prolong its life (added to the cost basis)
7. Redlining
A. 1)Note rate 2)Index 3)Margin 4)Interest rate caps 5)Payment Cap 6)Adjustment Period 7)Conversion option
B. Refers to a transfer of rights or duties under a contract to a third party.
C. Illegal practice by lending institutions to deny or discourage loan application in an area based on its racial
composition or deterioration.
D. written promise to repay a debt in definite installments with interest.
8. Broker
A. 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
B. In real estate, generally a listing agreement, a buyer agency agreement or a management agreement (a document
evidencing formal employment between principal and agent).
C. Certain properties can be restricted to occupancy by elderly persons. HOPA--Housing for Older Persons Act of 1995.
62 or older or housing occupied by at least one person 55 or older per unit.
D. A reference to a publicly recorded document, usually an earlier deed. The referenced document typically contains a
legal description of the property.
9. Encumbrance
A. the wooden skeleton of the house consisting of the floors, walls, ceilings, and roof
B. maximum amount of security deposit if tenancy is from month to month.
C. A claim, charge, or liability that attaches to and is binding on real estate.
D. 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.
10. basement
A. a loan in which the monthly principal and interest payments are a constant amount, but that payment amount is not
sufficient to completely pay off the loan within the loan term; balloon payment due at maturity
B. story-high space below the first floor; floor is usually concrete slab
C. one who is authorized to represent the principal in only one specific act or business transaction
D. Fixed objects used to establish real estate boundaries. Ex.: stones, trees, lakes, streets, markers placed by
surveyors.
Circle the letter of the Question that corresponds to the displayed Answer.
11. The capacity to satisfy future owners needs and desires; how future owners can make good use of
the property.
A. Demand
B. Trade Fixture
C. Metes-and-bounds description
D. Utility
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