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Alabama Real Estate Exam Questions
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Alabama Real Estate Exam Questions Alabama Real Estate Exam Questions Alabama Real Estate Exam Questions
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Alabama Real Estate Exam QuestionsWhich of the following liens would take priority?
A. An IRS lien
B. This years real estate taxes
C. A judgement lien filed 3 weeks ago
D. A mechanic's lien - ANS B. This years real estate taxes
An example of blockbusting would be:
A. When a real estate agents alert residents of a neighborhood that their area is changing due to
unwanted people moving in and they should sell before values fall.
B. When lenders refuse lending to a certain targeted segment of a city.
C. When insurance companies refuse to insure homes in a targeted segment of a city.
D. When a realtor steers buyers to a targeted segment. - ANS A. When a real estate agents alert
residents of a neighborhood that their area is changing due to unwanted people moving in and they
should sell before values fall.
You sold a property near a large airport. The flight patterns have been permanently changed with
the addition on a new runway resulting in a 25% loss in property values. This is an example of:
A. Material obsolescence
B. Location obsolescence
C. Economic obsolescence
D. Function obsolescence - ANS C. Economic obsolescence
Involuntary methods of conveying property include all of the following except:
A. Escheat
B. Adverse possession
C. Quitclaim Deeds
,D. Condemnation - ANS C. Quitclaim Deeds
The right of a defaulting borrower to keep title to a property by satisfying the debt prior to the
foreclosure sale is called:
A. Equitable redemption
B. Trustee's sale
C. Statutory redemption
D. Remainder rights - ANS A. Equitable redemption
When leasing commercial space, and the rent is based on the gross sales of a business, the lease is:
A. a net lease
B. a gross lease
C. a percentage lease
D. An open ended lease - ANS C. a percentage lease
One loan was obtained using 12 properties as security. This type of mortgage would be called?
A. a package mortgage
B. a purchase with hard money not backed by Fannie Mae
C. an open-ended mortgage
D. a blanket mortgage - ANS D. a blanket mortgage
A bill of sale is a document used to transfer what?
A. Upgrades on a new construction home
B. Personal Property
C. Real Property
D. Easements - ANS B. Personal Property
,Which of the following types of legal descriptions describes property by starting with an identifiable
point and then describes the succeeding sides by direction and length?
A. Rectangular
B. Rural
C. Metes and Bounds
D. County, Block and Lot - ANS C. Metes and Bounds
The primary purpose of a deed is to:
A. Prevent adverse possession
B. Transfer title rights
C. Prove ownership
D. To give material notice - ANS B. Transfer title rights
A house sold for $300,000. The buyer is taking out an 80% loan with a 4% interest rate, had to pay
$4,000 in closing costs, and three discount points. What is the total amount due at closing by the
buyer? - ANS Total amount due: $71,200
$300,000 x 0.8 = $240,000 Loan x 0.03 points = $7,200 in points
$300,000 - $240,000 loan = $60,000 Down payment
$4,000 in closing costs
*interest rate in this question is irrelevant
After a stream flooded due to heavy rain and then receded,
the flow of water removed a strip of land along the river bank.
This would be known as:
A. Accretion
B. Reversion
C. Alluvion
, D. Avulsion - ANS D. Avulsion
An abrupt change in the course of a stream that forms the boundary between 2 parcels resulting in a
loss of some land.
Which of the following is an encumbrance?
A. a mortgage
B. an easement
C. a property tax lien
D. All of the above - ANS D. All of the above
An example of an easement in gross is the right of:
A. a roofing company that is reroofing a house has stored some of their supplies slightly onto the
neighbor's yard.
B. kids playing football on their own yard as well as the neighbor's yard.
C. a painting company you have hired to repaint your house is parking their truck on your driveway.
D. a utility company accessing your property to maintain wires and pipes. - ANS D. a utility company
accessing your property to maintain wires and pipes.
Federal Nation Mortgage Association (FNMA/Fannie Mae)
A. a federal agency that buys FHA and VA loans
B. a federal agency which acts as a watchdog on the primary mortgage market
C. a government sponsored, private corporation designed to assist the primary market
D. a federal agency that insures all types of mortgage loANS - ANS C. a government sponsored,
private corporation designed to assist the primary market
Fannie=PRIVATE
The type of real estate ownership that is MOST all-inclusive is:
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