Modern Real Estate Quiz
Circle the letter of the Answer that corresponds to the displayed Question.
1. Quick Take
A. a loan that is not backed by a gov't agency.; lender bears all the risk in the event of default
B. Often used to store petroleum, if leaking can contaminate groundwater, only 10% of tank needs to be underground to
require monitoring
C. A method of condemnation in which title and possession of private property can immediately be transferred to a public
authority.
D. A legally enforceable promise or set of promises between legally competent parties.
2. Easement
A. The right to use the land of another for a particular purpose.
B. systems to limit the source of environmental hazards and reduce their effect on humans and the surrounding
environment
C. Scarcity, Location, Improvements, & Permanence of investment. aka SLIP
D. The act of encouraging people to sell or rent their homes by claiming that the entry of a protected class will have a
negative impact on property values.
3. boot
A. money or property given to make up any difference in value or equity between two properties in a 1031 exchange
B. Demand, Utility, Scarcity & Transferability (DUST)
C. A notice that there is and action or lawsuit pending that may adversely affect the title.
D. Federal law that prohibits discrimination based on familial status, race, sex, handicap, color, religion, national origin.
(FRESH CORN)
4. Price-fixing
A. the practice of setting prices for products or services rather than letting competition on the open market establish
them.
B. A personal interest in or right to use the land of another. The right to use is not attached to any ownership. (personal
or commercial)
C. provides that on sale of the property by the borrower to a buyer who wants to assume the loan, the lender has the
choice of either declaring the entire debt to be due and payable immediately or permitting the buyer to assume the loan
D. The act of encouraging people to sell or rent their homes by claiming that the entry of a protected class will have a
negative impact on property values.
5. Dual agency
A. when the broker/firm represents the buyer and the seller in the same transaction
B. A type of contract in which one party makes a promise to induce a second party to do something. "I will give you a
reward if you find my dog"
C. principal and interest loan payment
D. An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.
6. Emblements or Fructus Industriales
, A. Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus
industriales. Usually considered to be personal property,
B. when agents who have actual knowledge of a material fact deliberately misinform a buyer, seller, tenant, or landlord
concerning such fact.
C. An estate in real estate that prohibits a specific condition on the property. Grantor has the right to re-enter the
property and reclaim ownership through legal proceedings.
D. 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
7. rescission
A. A notice that there is and action or lawsuit pending that may adversely affect the title.
B. The legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions.
C. Illegal practice by lending institutions to deny or discourage loan application in an area based on its racial
composition or deterioration.
D. the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and
charges
8. Net operating income
A. laws that prohibit monopolies and contracts, combinations, and conspiracies that unreasonable restrain trade.
B. When you deduct the annual operating expenses of the real estate from the effective gross income.
C. People who are recognized by law as being able to contract with others; those of legal age and sound mind; a
requirement of a legal enforceable contract.
D. A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained
development or subdivision.
9. Lis Pendens
A. the only legal way a landlord can evict a tenant; through a hearing before a magistrate in small claims court.
B. An item of personal property that has been converted to real property by being permanently affixed to the realty.
C. A notice that there is and action or lawsuit pending that may adversely affect the title.
D. also called a "term loan", it only calls for periodic payments of interest.
10. 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 source of funds for homeowners who wish to finance the purchase of expensive items; consolidate existing
installment loans on credit card debt; or pay for medical, educational, home improvement, or other expenses
C. the fiduciary relationship between the principal and the agent.
D. Estimate of the quantity, quality or value of something.
11. Fee Simple with Condition Subsequent
A. requires property owners to obtain a permit from the Coastal Resources Commission before participating in any
dredging or filling that may affect vegetation or aquatic conditions in NC waters or marshlands
B. An estate in real estate that prohibits a specific condition on the property. Grantor has the right to re-enter the
property and reclaim ownership through legal proceedings.
C. profits from assets owned for 12 months or less
D. the vertical members in the wall framing; usually placed 16-24 inches apart and serve as main support for the roof
and/or the story above
, 12. Ms. Murphy's Law
A. a person who retains possession of leased property after the lease has expired; the landlord may continue to accept
rent or start eviction procedures.
B. states that if the dwelling has four or less units and the owner lives in one of the units, it is exempt from the Fair
Housing Act.
C. Property used in an appraisal report that is substantially equivalent to the subject property.
D. Items, called chattels, that do not fit into the definition of real property; movable objects like; furniture, clothing,
jewelry, money, vehicles, etc.
13. NC Interstate Succession Act
A. a gov't agency under HUD that sells mortgage-backed securities that are backed by pools of FHA and VA loans
B. The State law of descent that dictates distribution of the real and personal property of the deceased that died without
a will.
C. Federal law that prohibits discrimination based on familial status, race, sex, handicap, color, religion, national origin.
(FRESH CORN)
D. Laws imposed by local government authorities that regulate and control the use of land and structures within a
designated district or zone.
14. Familial Status
A. A legally enforceable promise or set of promises between legally competent parties.
B. law designed to protect, preserve, and give management guidelines in coastal areas of the state and places a severe
limitation on developments
C. a gov't agency under HUD that sells mortgage-backed securities that are backed by pools of FHA and VA loans
D. refers to the presence of one or more individuals who have not reached the age of 18 and who live with either a
parent or legal guardian. The term also includes a woman who is pregnant.
15. negative amortization
A. a tax term used in exchanges; property may be exchanged for life in kind property and the tax postponed (does not
refer to the physical similarity of the properties).
B. The reappraisal process based on a statutory schedule of every eight years.
C. An easement that is annexed to the ownership of one parcel of land and used for the benefit of another parcel of land.
The easement "runs with the land"
D. an increase in the loan balance.
16. buy down
A. The legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions.
B. a way to lower the initial interest rate on a mortgage or deed of trust loan; common type is called a 3-2-1
C. the lowest horizontal member of the house frame; also on a window or door
D. A dwelling(mobile home) built under HUD regulations with a permanent chassis. Considered personal property until
moving hitch, wheels and axles are removed, the unit is attached to a permanent foundation on land, and an affidavit is
filed with the DMV.
17. Working with Real Estate Agents
A. An oral or written contract in which the parties state the contract's terms and express their intentions in words.
B. A measure of heat used in rating the capacity of heating and cooling systems. (BTU)
C. A mandatory agency information brochure that a licensee must give to and review with consumers in all real estate
sales transactions no later than first substantial contact; it does not create agency.
D. let the buyer beware
