Real Estate Agent Hardest Quiz: Trivia!

The physical characteristics of real estate are that it is immobile, indestructible, and unique. Real estate, which includes land and any permanent structures on it, cannot be moved from one location to another. It is also indestructible in the sense that it cannot be destroyed or consumed like other goods. Lastly, each piece of land is unique, with its own location, size, and features, making it different from any other piece of land. Therefore, all of the given options accurately describe the physical characteristics of real estate.

The question describes accretion, and the land that accretes from a river belongs to the adjoining landowner.

Pat inherits exactly what Sam owned just before his death: a location on the earth’s surface, everything below it to the center of the earth and the space above it toward the heavens.

Prior to the escrow, the seller is still the owner, therefore, the broker should get written consent from the owner before allowing a buyer to take possession.

Common law standards for determining whether an installation is a fixture – and so to be treated as real property – or a chattel, an item that would not convey – in such a dispute are: the intention of the person installing it; how uniquely related the item is to the property in which it is installed; the damage its removal would cause; the agreement of sale; and the relationship of the parties. The original cost of the installation, although important to one or the other of the parties, is not to be considered in this decision.

The correct answer is considering sales of similar properties. In the Sales Comparison Approach, the value of a building is estimated by comparing it to the sales prices of similar properties in the market. This approach assumes that similar properties in the same market will have similar values. By analyzing the sales of comparable properties, an appraiser can determine a probable sales price for the subject property. This approach is commonly used in real estate appraisal to determine the market value of a property.

Zoning laws have been held by the courts to be a valid exercise of the police power of the city or country

An easement created when a person has been using a roadway without permission for over 20 years is called an easement by prescription. This type of easement is acquired through continuous and uninterrupted use of another person's property for a specific period of time. It is similar to adverse possession, where a person can gain ownership of a property by openly and continuously occupying it without permission for a certain period of time. In the case of an easement by prescription, the person gains the right to use a specific portion of another person's property, such as a roadway, without permission.

Commissions for property sold in probate are set by the individual court district.

The correct answer is "Valid until the man died". This is because a life estate lease is a type of lease that grants the tenant the right to use and occupy a property for the duration of their life. In this case, the person who held the life estate leased the property for five years but then passed away. Since the lease was tied to the person's life, it would be valid until their death, after which the new owners would have the right to order the lessee to move out.

In the neighborhood is the key phrase, outside the property lines

The principle of regression states that the worth of a greater valued property is reduced by the proximity of many lesser valued properties of the same type.

A percentage lease is typified by the rent being calculated as a percentage of gross sales.

The Real Estate Commissioner and the courts are very protective of consumers. Therefore, they will not allow an “as is” clause to be valid except for obvious defects, which any reasonable and prudent person could discover.

The principle of substitution, in essence, states that “no prudent person would pay more for a parcel of real property than the price of a reasonably close alternative which is available without undue delay”.

The appraiser’s fee would have nothing to do with a separate site and improvement evaluation

Void. The listing must be signed by the parties who have the authority to sell.

Tenant in common with Agnes and Zelma. Joint tenancy requires the unities of time, title, interest and possession. When Jayne sells her property to Maggie, the unity of time and title is breached. Agnes and Zelma are still joint tenants, but Maggie would be a tenant in common with them.

By permanently attaching the cabinets to the home, Able has incorporated them into the land. This means that the cabinets have become part of the real property and are no longer considered personal property.

If the seller will not disclose the defect, you must tell any buyers yourself, even if this means the sale falls through.

Riparian is from the Latin which means river. Riparian rights are rights belonging to property that are adjacent to rivers and streams.

Capitalization is the process of converting the annual net operating income into an estimated value. This is done by dividing the net operating income by the capitalization rate. The capitalization rate is determined based on various factors such as market conditions, risk, and return expectations. By estimating the value of the property through capitalization, it helps in determining its worth in the market and making informed investment decisions.

This is a negative question that asks which of the choices given is not a recognized test of a fixture. The time in which a fixture is installed is not a test of a fixture. The four tests of a fixture would be adaptability of the object to the property to which it is attached. If you cut venetian blinds for a give window, the blinds are adaptable to those specific windows. The manner of attaching is also a test. If you grout a mirror to a bathroom wall, it shows the intention of making it a permanent attachment. The intent of the person is a key test. Time is not a test.

Savings and loan associations place a greater percentage of their funds into real estate loans. These loans, namely, are in the single-family dwelling area. As to life insurance companies, they prefer long term, high valued commercial properties. Commercial banks, due to the liquidity requirements, prefer short term loans such as construction loans, although here too, funds are available for the home loan maker

In an area where average quality homes are being constructed among high quality homes, there would tend to be a decrease in the overall neighborhood property values.

A cloud on title is a relatively unimportant condition affecting title. The discrepancy in names would cause such a cloud on title.

The trustor refers to the person who borrows money on a loan. In a loan agreement, the trustor is the individual or entity that receives the funds from the lender and is responsible for repaying the loan amount. This term is commonly used in trust deeds or mortgages where the trustor pledges a property as collateral for the loan. The trustor is not the same as the trustee, beneficiary, or vendor in a land contract, as they have different roles and responsibilities in those contexts.

The correct answer is "Loss of value due to any cause." Depreciation, in the context of building appraisal, refers to the decrease in value of a building over time due to factors such as wear and tear, obsolescence, or damage. This deduction accounts for the loss of value that can occur due to any cause, whether it be physical deterioration, functional obsolescence, or external factors impacting the property. It is important for appraisers to consider depreciation when determining the value of a building, as it reflects the actual condition and marketability of the property.

In the income capitalization approach to value, the capitalization rate must be estimated. This rate is used to convert the expected income generated by the property into an estimate of its value. It takes into account factors such as the risk associated with the investment, the expected return on investment, and market conditions. By estimating the capitalization rate, investors can determine the present value of future income streams and make informed decisions about the value of the property.

The quantity survey method is a way for an appraiser to determine the building reproduction cost. It involves estimating the cost of raw materials, labor, and indirect costs needed to build the structure. This method is based on a detailed analysis of the quantities and costs of all the materials and labor required for construction. It provides a more accurate and comprehensive estimate compared to other methods such as the square foot method, cubic foot method, or unit-in place method.

A”, “B”, and “C” might give the lender on a trust deed the right to foreclose, but they do not affect the validity of the deed.

A less-than-freehold estate is a landlord/tenant arrangement. Of the choices offered, only a sale-leaseback would result in a less-than-freehold estate.

The market data approach to appraising is the simplest of the three approaches. It is the easiest to learn and to use. It is the oldest approach.

Real property can be converted into personal property through severance. Severance refers to the act of separating or removing an object or asset from real property, thereby transforming it into personal property. This can occur when an item that was previously attached or affixed to the land, such as a fixture or building, is detached or removed. Once severed, the item becomes personal property and can be owned, transferred, or sold independently from the real property.

Land assembly refers to the process of acquiring multiple parcels of land with varying ownership in order to facilitate planned and rational development and socialized housing programs without individual boundary restrictions. This involves purchasing or expropriating the land to create larger contiguous plots that can be used for specific purposes. This practice allows for more efficient land use and development, as well as the implementation of comprehensive urban planning strategies.

A defeasance clause is a provision in a mortgage contract that releases the property from the encumbrance when the obligation is fully paid. This means that once the borrower has completely paid off their mortgage, the encumbrance on the property is removed, and the borrower becomes the sole owner of the property free from any mortgage-related restrictions or claims. The defeasance clause ensures that the borrower's rights to the property are fully restored upon fulfillment of their payment obligations.

Land banking refers to the acquisition of land in advance of actual need based on present value for future planned development. It involves purchasing and holding onto land for future use or development, often with the intention of selling it at a higher price in the future. This strategy allows for strategic control over land resources and can be used to promote planned urban development and prevent speculative activity. The Urban Land Reform Law recognizes land banking as a means to ensure efficient land use and promote sustainable urban growth.

Escrow instructions are an agreement between buyer and seller, and cannot be unilaterally canceled without the consent of the other. Death would not terminate their agreement, but the instructions would be a contract normally binding upon the heirs.

Also called Due on Sale. It states that the lender may demand the loan plus accrued interest be paid in full in the event the property is sold. The purpose of this clause is to prevent a buyer from assuming or taking title subject to an existing loan w/o the consent of the lender.

Growing crops on land are presumed to go with the land when the land is sold unless other agreements have been made

A broker should have known that a statement about a material fact was false. There are many definitions of the word misrepresentation. The basic definition is that a party made a decision based on information he/she/they thought was true, but it was not. Was it a mistake and no one could have reasonably known? Was it intentional? Was it fraud? Negligent misrepresentation occurs when it is determined that this is information that the licensee “should have known and did not know”.

An ordinary asset refers to property that is held by the owner as inventory or stock in a trade for a buy and sell business or used in connection with trade, business, or a source of income. Unlike capital assets, which are typically held for investment purposes, ordinary assets are actively used or sold in the normal course of business operations. This distinction is important for tax and accounting purposes, as the treatment of ordinary assets may differ from that of capital assets.

The cost approach tends to set the upper limits of value.

The lessor is the landlord who is entitled to the reversionary interest in the property in the event the tenant has breached the lease and refuses to give up possession

Flood waters (water from a downpour, river overflowing its bank) one may protect himself against such flood by building a dike, or sand bagging or other methods of diverting the water to other property owners.

Unless the loan documents contain an alienation clause, the buyer may assume the loan. However, whenever real property is sold, the grantor must deliver a deed

This is a statement of fact regarding flood hazards.

Termination of an easement results from express release which may be a quitclaim deed, signed by the holder of the dominant tenement, or by mutual agreement of the parties involved.

A license is a permission granted by the owner of a property to someone else to use their property. It is a revocable permission, meaning that the owner can withdraw or terminate the license at any time. This distinguishes it from other options listed, such as an easement appurtenant (which is a permanent right to use someone else's property) or a deed restriction (which is a limitation placed on the use of a property). An encroachment, on the other hand, refers to a situation where someone's property extends onto another person's property without permission, so it is not applicable in this context.

The offeror communicates notice of revocation after the offeree has properly posted acceptance would not terminate an offer to purchase real property. Once the offeree has properly accepted the offer by posting their acceptance, a binding contract is formed. At this point, the offeror cannot revoke the offer. The offeror's communication of revocation would be ineffective as the acceptance has already been made. Therefore, this action would not terminate the offer.