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Modern Real Estate Quiz 200 questions and answers.
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Modern Real Estate Quiz 200 questions and answers.
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. Buffer Zones
A. the return or profit on a loan
B. Areas such as landscaped parks and playgrounds used to separate and screen residential areas from nonresidential
areas
C. A landowner's claim to use water in large navigable lakes and oceans adjacent to the property. The ownership rights
to land bordering these bodies of water up to the average high-water mark.
D. a gov't agency under HUD that sells mortgage-backed securities that are backed by pools of FHA and VA loans
2. Sales comparison approach
A. A loan in which only interest is paid during the term of the loan, with the entire principal due with the final interest
payment; also called a straight loan.
B. An appraisal technique that determines assessed value for all lands in a given area by applying an overall percentage
increase of decrease.
C. AKA the market data approach. When an estimate of value is obtained by comparing the subject property with
recently sold comparable properties.
D. In real estate, generally a listing agreement, a buyer agency agreement or a management agreement (a document
evidencing formal employment between principal and agent).
3. Willful misrepresentation
A. takes place when agents have actual knowledge of a material fact and a duty to disclose such fact to a buyer, seller,
tenant, or landlord, but deliberately fail to disclose such fact.
B. A rule of law stating that once written acceptance is placed in control of the mailing service, it is considered accepted-
-not when the acceptance is actually received by the offeror.
C. a loss of value in property due to any cause; an expense deduction for tax purposes taken over the period of
ownership of income property
D. when agents who have actual knowledge of a material fact deliberately misinform a buyer, seller, tenant, or landlord
concerning such fact.
4. sublease
A. the leasing of premises by a tenant to a third party for part of the lessee's remaining term
B. one of a series of sloping beams that extends from the center ridge board to an exterior wall and provides the main
support for the roof.
C. A report furnished to prospective buyers contain essential information about a development contain 25 or more lots.
D. Water that exists under earth's surface in tiny spaces or crevices in geological formations; if contaminated, threatens
source of clean drinking water
5. Cost Approach
A. Administers the Federal Fair Housing Act under the direction of the Secretary of HUD.
B. the process of estimating the value of a property by adding the appraiser's estimate of the reproduction or
replacement cost of the building, less depreciation to the estimated land value.
C. The owner
D. An attempt by the offeree to change any of the terms proposed by the offeror
,6. underground storage tank
A. story-high space below the first floor; floor is usually concrete slab
B. Often used to store petroleum, if leaking can contaminate groundwater, only 10% of tank needs to be underground to
require monitoring
C. a lease that provides for increases in rent to occur at set future dates; often used in the rental of office space for
multiple-year terms. Also called a step-up lease.
D. maximum amount of security deposit if tenancy is longer than month to month.
7. Remainder Interest
A. A future interest in real estate created by the grantor for some third party that will be enjoyed after the termination of a
prior estate, such as when an owner conveys a life estate to one party and the remainder to another.
B. The amount of goods available in the market to be sold at a given price. The term is often coupled with demand'
C. Owns a share of stock in the corporation and has a proprietary lease to the unit
D. One entitled to receive a remainder interest in some estate sometime in the future.
8. Estover
A. When the property does NOT sell for an unusually high or low price because of a special relationship between a
buyer & a seller; parties are dealing from equal bargaining positions
B. A necessity allowed by law; for example, the right of a life tenant to use some of the property's resources to provide
for needed repairs.
C. 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.
D. the primary duty of the land lord to supply fit and habitable premises to the tenant.
9. Agricultural
A. the owner's initial cost for the real estate including closing expenses
B. An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated
person or persons.
C. farms, timberland, ranches, and orchards.
D. 1) Owned by Husband and Wife ONLY 2)each own 100% 3) Both must sign when sold 4)a) Divorce changes to
tenants in common automatically but legal separation does not b)if not stated, the law presumes, tenants by entire 5)
right of survivorship (automatic)
10. estate at sufferance
A. the lowest horizontal member of the house frame; also on a window or door
B. Making documents that affect property ownership readily available as matters of public record.
C. an estate that arises when a tenant who lawfully came into possession of real property continues, after the tenant's
rights have expired, to hold possession of the premises without the consent of the landlord; lowest estate in real estate.
D. An owner's rights in land that borders on or includes a steam, river, or lake. These rights include access to and use of
the water.
11. assignment
A. Refers to a transfer of rights or duties under a contract to a third party.
B. Granted to a property owner who wishes to use property in a special way that is in the public interest such as a
church or hospital.
, C. a market for the purchase and sale of existing mortgages
D. When you deduct the annual operating expenses of the real estate from the effective gross income.
12. Trade Fixture
A. An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.
B. Specifies that a condo is created and established when the developer executes and records a declaration of its
creation in the county where the property is located
C. a horizontal board laid on edge, resting on the beams that provide the main support for the floor.
D. the extra thick framing over doors and windows to bear the weight of the building above the opening
13. reality of consent
A. a wooden board fastened at the top of the exterior wall under the eave soffit to prevent penetration of weather
elements
B. 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
C. If misrepresentation, fraud, mistake of fact, undue influence or duress are absent in contract formation, good contract
is formed.
D. 1)the promises made in the sales contract are fulfilled 2)the mortgage loans funds are distributed to the buyer for use
3)other settlement costs or funds are dispersed
14. judicial foreclosure
A. A contract in which all parties have fulfilled their promises.
B. unpaid items to be prorated such as unpaid current real estate taxes or interest on an assumed mortgage that are
owed by the seller but will be paid later by the buyer.
C. the form of foreclosure used in lien theory states; court process
D. any fact that is important or relevant to the issue at hand; mandatory disclosure by all agents in a transaction to all
parties of the transaction
15. Police Power
A. The state's inherent authority to create and adopt regulations necessary to protect the public health, safety and
general welfare of the citizenry.
B. the practice of setting prices for products or services rather than letting competition on the open market establish
them.
C. when trust funds and the firm/broker's personal/business funds are placed in the same account
D. 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.
16. Fee Simple Defeasible or defeasible fee estate
A. An estate in which the holder has a fee simple title that may be terminated upon the occurrence or nonoccurrence of
a specified event. Two categories of defeasible fee estates exist: fee simple determinable and fee simple on condition
subsequent.
B. a flat strip of wood or metal that encloses the ends of the rafters; gutters are usually attached to it.
C. a statement that tells the borrower whether the lender intends to service the loan or to transfer it to another lender.
D. The owner
17. Tax lien
, A. 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
B. a conveyance from a landlord (an owner of real estate), to a tenant that transfers the right of possession and use of
the owner's property for a specified period of time.
C. Lien that is attached to real property as of the listing date.
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.
18. Voidable Contract
A. A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties.
B. 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.
C. The process by which the power of eminent domain is exercised.
D. Department of Housing and Urban Development. Enforces the Federal Fair Housing Act.
19. Condition
A. the clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the
borrower defaults on an installment payment or another covenant.
B. a person who retains possession of leased property after the lease has expired; the landlord may continue to accept
rent or start eviction procedures.
C. It limits coverage of a specified property in an insurance policy.
D. the primary duty of the land lord to supply fit and habitable premises to the tenant.
20. essential elements of a note
A. 1)term 2)promise to pay 3)signature of the borrower(s)
B. created to handle problems that occur as a result of sedimentation in state waters
C. 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)
D. Do own land underneath unit (footprint) can not stack units vertically; no cancellation period; own entire unit (and half
of party wall); Common areas owned by Homeowners association
21. Overlay District
A. A type of zoning that is superimposed over another type of zoning.
B. a quasi-government agency established to purchase any kind of mortgage loans in the secondary mortgage market
from the primary lenders.
C. the only legal way a landlord can evict a tenant; through a hearing before a magistrate in small claims court.
D. the leasing of premises by a tenant to a third party for part of the lessee's remaining term
22. Steering
A. The channeling of homeowners to particular neighborhoods based on the presence or absence of a protected class.
B. Deed that is used when a borrower has defaulted on the mortgage loan and wants to avoid a foreclosure action.
C. A contract that has no legal force or effect. It is unenforceable in a court of law b/c it does not meet the essential
elements of a contract.
D. An insurance policy covering buildings and personal property against loss or damage from fire, lighting, removal,
windstorm, hail, explosion, riot, smoke, vandalism and theft.
23. special promissory note provisions
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