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47 Real Estate Exam Review Questions Flashcards | StudBud
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47 Real Estate Exam Review Questions
47 Real Estate Exam Review Questions
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1
The area of a section is
(A) 43,560 square feet.
(B) 80 acres.
(C) 160 acres.
(D) 640 acres.
2
What document do you check to determine the amount of insulation needed in a new house?
(B) Deed restriction
(C) Building code
(D) Subdivision regulations
(A) Zoning ordinance
3
Equity is best defined as
the amount owed on the mortgage.
the down payment.
the amount of cash taken out after the house IS sold.
the difference between the value and the debt attributable to the property.
4
What kind of title do buyers have when they sign an installment sales contract?
(B) Implied
(C) Full
(A) Executory
(D) Equitable
5
By which of the following can you not lose title to your property involuntarily?
(B) Foreclosure
D Avulsion
(C) Dedication
(A) Adverse possession
6
A deed restriction says that a property can't be sold to a Native American. Which of the following is true?
(B) fair housing laws do not apply to Native Americans due to sovereignty
(C) Fair housing law takes precedence over the deed restriction.
(A) The deed restriction supersedes fair housing law.
(D This type of restriction was automatically removed by a treaty in 1888.
7
What kind of relationship exists between an agent and a principal?
(A) Exclusive
(B) Special
(D) Fiduciary
(C) Compensatory
8
Reproductions cost is
(C) the cost to construct an exact duplicate of the building.
(B) the cost to construct a building using modern materials.
D the same as market value.
(A) used in the income approach to value.
9
A property has an assessed value of $60k and an equalization rate of 1.25. What is the equalized value of the property?
(B) $48,000
(C) $60,000
(A) $40,000
(D) $75,000
10
The VA requires what in order to secure loan?
PMI
LTV
CRV
FSA
11
A management plan for an environmentally polluted site would be developed in which phase environmental assessment?
(B) 2
(D) 4
(C) 3
(A) 1
12
How do mortgage broker and a mortgage banker differ?
(D) There is no difference between them.
(C) A banker works for the secondary market, a mortgage broker is scam
(A) A mortgage banker arranges loans, a mortgage broker lends money.
(B) A mortgage banker lends money, : mortgage broker arranges loans.
13
Public improvements in a specific neighborhood often are paid for by
(A) ad valorem taxes.
(D) the general tax.
B special assessment district taxes.
(C) a public improvement lien.
14
A broker takes a listing to sell a house. What is the relationship between the broker and the seller?
(D) Principal-principal
B Client-customer
(A) Agent-principal
(C) Agent-customer
15
Which of the following would be unacceptable under the federal fair housing law?
(D) Baptist Church sponsored housing available only to Baptists.
(A) The owner of a 3 family house refusing to rent to an Asian man.
(B) A senior residence for people over 62.
(C) A private club of graduates of an exclusive prep school.
16
In which of the of following forms of co-ownership are all owners required to sign a deed of sale?
(A) Tenancy in common
(D) Tenancy by survivorship
(B) Joint tenancy
(C) Tenancy by the entirety
17
Ari Gold borrows money from the First Bank of Main Street. He is
the mortgagee.
the mortgagee.
the note holder.
the mortgagor.
18
Typical wording in the habendum clause would be
(A) "I hereby grant."
(C) "To have and to hold."
(D) "$10.00 and other valuable consideration."
(B) "In witness whereof."
19
The rent on a house is $500 per month. The gross rent multiplier is 180. What is the estimated value of the house?
(B) $1,080,000
(A) $270,000
(C) $36,000
(D) $90,000
20
The term to describe a situation where someone takes over obligations of another in a contract is
(A) novation.
(D unenforceable.
(B assignment.
(C voidable.
21
Which statement is true about real estate tax liens?
(B) They are paid according when they were recorded.
(C) They take priority over all liens except the mortgage.
(A) They take priority over all other liens.
(D) They are the only types of liens that do not attach to the property.
22
The rate that is used to adjust taxes among several towns in the same county is called is
the equalization rate.
the capitalization rate.
the assessment rate.
the mill rate.
23
You own property on a river that has commercial boat traffic. What rights do likely have regardingthe water? to
(C) You have rights to use the water and own to the edge of the river.
(D) You can build a pier to the middle of the river
(A) You own to the centerline of the river.
(B You have no rights to the water.
24
Mike the seller refuses to sell his house to Black couple.
(D) He is breaking no law as long as he owns fewer than three houses
(A) He is breaking the law under the 1968 Federal Fair Housing Act.
(C) He is breaking no law as long as he doesn't use real estate agent
(B) He is breaking the law under the 1866 Civil Rights Act.
25
Sam gets a loan from a bank to buy a property and offers the property as security for the loan. Which is true?
(C) Sam is the mortgagee and gets a mortgage from the bank.
(B) Sam is the mortgagor and gives a mortgage to the bank.
(A) Sam is the mortgagee and gives a mortgage to the bank.
(D) Sam is the mortgagor and gets a mortgage from the bank.
26
The right of the government to take your real estate against your will is known as
(D) zoning.
(A) escheat.
(C) eminent domain.
(B) negotiation.
27
The period of time after a tax sale during which a property may be redeemed is called
(A) the statutory period of redemption.
(B) the equitable period of redemption.
(D) the lien payment period.
(C) the in rem redemption period.
28
The term used to describe roads, sewers, water lines and other municipal service facilities is
(B) demographics.
(D) infrastructure.
(C) accessory uses.
(A) utilities.
29
What's the down payment on a property selling for $300k,appraised at $285k and the loan to value ratio is 90%?
(B) $30,000
(C) $43,500
(A) $28,500
(D) $256,500
30
A minor change to a real estate contract generally is handled by
B) novation.
(A) assignment.
(C initialing the change.
D) verbal agreement.
31
You exchange properties. Your property is worth $200k. Theirs is $250k. You give the them $50k in cash. The cash is
(D) capital gains and the tax is deferred until she sells her property.
(A) boot and is taxable to her.
(B) boot and is taxable to
(C) capital gains and the tax is deferred until you sell your property.
32
Which of the following advertisements for a house for sale would probably be acceptable?
(D) Two blocks from the local Episcopal Church
(B) Fill your Easter basket with a new house
(C) Husband's dream workshop
(A) Quiet Christian neighborhood
33
A contract to do something illegal is
(B) void.
(C) valid.
(A) voidable.
(D) executory.
34
The theory that best describes the rights that you get with a piece of real estate is
(A) the doctrine of complete rights.
(C) the development rights theory.
(B) the bundle of rights.
(D) fee simple absolute.
35
What approach to value would be most suitable to appraise a shopping center?
(A) Income approach
B) Cost approach
(D) Reconstructed value approach
(C) Sales comparison approach
36
You subdivide some land for a residential development. You want to give the streets to the town. You do so by
(D) divestiture.
(C) avulsion.
(A) descent.
(B) dedication.
37
A title free from any defects is a good definition of
(C) certified title.
(A) equitable title.
(D) insured title.
(B) marketable title.
38
The amount of compensation received by a property manager is
(C) a matter of individual negotiation.
A) set by the local real estate board.
(D) always based on percentage of gross rents.
(B) set by the local property owner's association.
39
A net lease requires the tenant to pay
(C) none of the of building expenses.
(A) all or some of the building expenses.
(B) all of the building expenses, including the mortgage payment.
(D) percentage of income earned by the tenant's business.
40
The right to redeem foreclosed property by paying the taxes after a tax sale is called
post foreclosure right of redemption.
equitable right of redemption.
in rem right of redemption.
statutory right of redemption.
41
A detached garage on a house lot is an example of
(C variance.
(D) special permit use.
(B) an accessory building.
(A) an accessory use.
42
A deed conveying title to property from a trust is called a
(B) deed in trust.
(D) trustee's deed.
(A) deed of trust.
(C) trust deed.
43
The process by which a will is validated is called
(D) probate.
(A) surrogacy.
C) validation.
(B) execution.
44
A real estate broker generally acts as what type of agent? (A)
(B) General agent
(D) Ratified agent
Universal agent
(C) Special agent
45
Land, improvements, and all the rights of ownership is a good definition of
(C) real property.
(B) real estate.
(A) land ownership.
(D) property.
46
When calculating capital gains, what is subtracted from the selling price?
(D) Adjusted basis
(A) Depreciation
(B) Capital investment
(C) Operating expenses
47
The Annual Percentage Rate could not be described as
the discount rate.
the yield.
points plus interest rate.
the actual interest rate.
