Civil Law Missed Exam Questions And Answers
Which is not a specific lien? - ANS-state income tax
State income taxes can become general liens that can attach to any property owned by the debtor. A
mortgage is specific to the property that will be collateral for a debt. Real estate taxes are s...
what grants zoning authority to municipal governme
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Civil Law Missed Exam Questions And Answers 2024-2025
Which is not a specific lien? - ANS-✔✔state income tax
State income taxes can become general liens that can attach to any property owned by the debtor. A
mortgage is specific to the property that will be collateral for a debt. Real estate taxes are specific to one
property. A mechanic's lien can attach only to the property that was the subject of the work being done.
Fee simple absolute estates are not - ANS-✔✔conditional
If a condition exists in the deed, the estate is fee simple conditional. Fee simple absolute implies there
are no conditions in the deed.
What grants zoning authority to municipal governments? - ANS-✔✔Police Power
The constitution grants all local governments the power to make and enforce laws. This is called police
power. Think of the government as Uncle Pete: Police, Power, Environment ,Taxation ,Escheat, Eminent
domain
What is an appraisal? - ANS-✔✔an opinion of value for the day of the appraisal only
When the appraiser looks at the home Sandy just purchased, he notices it has a fireplace and the
comparable homes do not. He makes a $3,000 upward adjustment on his sales comparison approach
worksheet. The $3,000 adjustment is based on what appraisal principle? - ANS-✔✔Contribution
This is the amount the fireplace "contributes" to the value. It is not necessarily the cost to install the
individual item.
,A property has been renting for $750 per month. Based on comparables, the GRM is 110. What is the
indicated value of the property? - ANS-✔✔$900,000
The indicated value using a GRM (Gross Rent Multiplier) is the (monthly rent x 12 (months)) x GRM. In
this case, ($750 X 12) x 110 = $990,000.
What law requires lenders to limit the amount of funds that can be held in reserves? - ANS-✔✔RESPA
The mortgagee is the - ANS-✔✔lender
Discount points on a mortgage are computed as a percentage of the - ANS-✔✔amount financed
Discount points represent the percentage by which the face amount of a mortgage loan is discounted or
reduced when sold to an investor to make its interest rate yield competitive in the current money
market. Each discount point equals 1% of the loan amount and is charged as prepaid interest at closing.
What document uses legal title to real property to secure debt? - ANS-✔✔mortgage
What expenses would NOT be found on a Loan Estimate? - ANS-✔✔moving costs
The Loan Estimate provides the buyer with the costs that will be incurred to take title to the land.
An agent is showing a house to a customer. The agent tells the buyer that the seller is desperate for an
offer. Which duty has the agent breached? - ANS-✔✔loyalty
Tina is the listing agent for a bank-owned listing. She drives by the listing to check on the vacant house.
When she arrives it is obvious that the structure has burned down. How did this agency relationship
terminate? - ANS-✔✔operation of law
,Operation of law (the correct answer) is when the broker or seller becomes incapacitated or dies, or if
the building is destroyed.
What type of agency relationship exists when a broker manages real property for the owner? - ANS-✔
✔general
Chelsea is a listing agent working for the listing broker and encounters a customer at the open house.
The customer asks Chelsea if she could recommend an offering price. Chelsea should recommend that
the customer - ANS-✔✔offer list price
The listing agent is informed by the seller that the basement gets wet when it rains. The agent says
nothing to the buyer. Who is liable for the failure to disclose the latent defect? - ANS-✔✔seller
The client is always liable for the acts of her agent. The agent may be liable to the seller for breaching a
fiduciary duty.
According to the Lead-Based Paint Hazard Reduction Act, what can happen to a licensee if she fails to
give a buyer the lead-based paint pamphlet and disclosures? - ANS-✔✔10,000 fine
Jail time
Real estate agent Sue is showing a buyer client a house. The house is full of antique furniture, fixtures,
and decorations. In the largest bedroom is a wall-sized wardrobe which covers the wall between the
bedroom and the bathroom. A slow leak behind the bathtub has caused chronic moisture in the plaster
of this wall. Sue should - ANS-✔✔tell the buyer about the latent defect
An implied contract is a - ANS-✔✔agreement not put into words, either written or verbal
, If seller Adam simply decides not to go through with the closing on a sale to buyer William, what can
William do about it? - ANS-✔✔Sue for specific performance and for damages
A successful lawsuit for specific performance may compel Adam to perform his responsibilities under
the contract, including transferring title to William. In addition, if William can prove other damages due
to Adam's refusal to perform, William may also sue to recover those damages. If the contract was
executed (completed), William would have obtained equitable title, and it would not matter that closing
had not occurred
The transfer of rights under a contract without the release from obligation is known as - ANS-✔✔
assignment
Tim makes an offer to buy Becky's house. Becky accepts the terms of the offer and evidences her
acceptance by signing the offer. Is there a valid real estate purchase contract? - ANS-✔✔No, the
acceptance has not been delivered back to the buyer
When a buyer changes his mind and withdraws his offer to purchase before it has been accepted by the
seller, what should that broker do with the earnest money? - ANS-✔✔return it to the buyer
An offer to purchase - ANS-✔✔may be revoked at any time prior to acceptance
Harvey enters into a lease where he must pay 30 percent of the landlord's expenses. Which type of lease
did Harvey sign? - ANS-✔✔net lease
What document lets a buyer and seller see the costs involved with closing the transaction? - ANS-✔✔
HUD-1 Settlement Statement
The good faith estimate is for buyers. The escrow and purchase agreements illustrate only the
agreement between the parties. A purchase agreement is often referred to as an escrow agreement.
The HUD-1 lets the buyer and seller see the costs involved with closing the transaction.
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