Real Estate Agent Hardest Quiz: Trivia!

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  • 1/60 Questions

    Physical Characteristics of a Real Estate

    • LAND IS IMMOBILE
    • LAND IS INDESTRUCTIBLE
    • LAND IS UNIQUE
    • All of the above
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About This Quiz

Do you understand what it takes to be a real estate agent? Would you like to try this quiz? A real estate representative is someone who helps people with either selling their property or purchasing a property. The property is typically a house or some other item. A real estate agent weighs the pros and cons of purchasing a property. See moreIf you intend to learn more about what a real estate agent does, check out
this quiz.

Real Estate Agent Hardest Quiz: Trivia! - Quiz

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  • 2. 

    A BUYER OF A RESIDENCE, PRIOR TO THE CLOSE OF ESCROW, ASKS THE BROKER FOR PERMISSION TO MOVE INTO THE PROPERTY. THE BROKER SHOULD:

    • Deny the buyer permission

    • Grant the buyer oral permission

    • Ask the buyer to sign a lease for the property

    • Obtain written consent from the owner

    Correct Answer
    A. Obtain written consent from the owner
    Explanation
    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.

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  • 3. 

    AN ADDITION TO LAND RESULTING IN THE FORMATION OF A GRADUAL BUILD UP BY NATURAL CAUSES. THE PARTY WHO    WOULD BENEFIT FROM THIS WOULD BE:

    • The land owner

    • The local government

    • The landowner’s neighbor

    • None of the above

    Correct Answer
    A. The land owner
    Explanation
    The question describes accretion, and the land that accretes from a river belongs to the adjoining landowner.

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  • 4. 

    SAM INHERITED ROLLING HILLS FROM HIS UNCLE. THE FIRST THING HE DID WITH THE VACANT PROPERTY WAS TO REMOVE ALL THE TOPSOIL, WHICH HE SOLD TO A LANDSCAPING COMPANY. SAM THEN REMOVED A THICK LAYER OF LIMESTONE AND SOLD IT TO A CONSTRUCTION COMPANY. FINALLY, HE DUG 40 FEET INTO THE BEDROCK AND SOLD IT FOR GRAVEL. WHEN SAM DIED, HE LEFT ROLLING HILLS TO HIS DAUGTHER, PAT. WHICH OF THE FOLLOWING STATEMENTS IS TRUE?

    • Pat inherent nothing, because Rolling Hills no longer exists

    • Pat inherits a large hole in the ground, but it is still Rolling Hills, down to the center of the earth.

    • Pat owns the gravel, limestone, and topsoil, no matter where it is.

    • Sam’s estate must restore Rolling Hills to its original condition

    Correct Answer
    A. Pat inherits a large hole in the ground, but it is still Rolling Hills, down to the center of the earth.
    Explanation
    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.

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  • 5. 

    THE BUYER AND THE SELLER OF A HOME ARE DEBATING WHETHER A CERTAIN ITEM IS REAL OR PERSONAL PROPERTY. THE BUYER SAYS IT IS REAL PROPERTY AND SHOULD CONVEY WITH THE HOUSE; THE SELLER SAYS IT IS PERSONAL PROPERTY AND WOULD NOT CONVEY WITHOUT A SEPARATE BILL OF SALE. IN DETERMINING WHETHER AN ITEM IS REAL OR PERSONAL PROPERTY, A COURT WOULD NOT CONSIDER WHICH OF THE FOLLOWING?

    • The cost of the item when it was purchased

    • Whether its removal would cause severe damage to the real estate

    • Whether the item is clearly adapted to the real estate

    • Any relevant agreement of the parties in their contract of sale.

    Correct Answer
    A. The cost of the item when it was purchased
    Explanation
    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.

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  • 6. 

    In the Sales Comparison Approach or Direct Market Comparison Approach to value the probable sales price of a building may be estimated  by:

    • Capitalizing net operating income

    • Considering sales of similar properties

    • Deducting accrued depreciation

    • Determining construction cost

    Correct Answer
    A. Considering sales of similar properties
    Explanation
    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.

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  • 7. 

    THE LEGITIMACY OF ZONING LAWS REST UPON:

    • The fact that planning boards are local, and thus close to the people they regulate

    • The established right of police power of government

    • The case of enforcing them

    • The fact that their enforcement does not interfere with interstate commerce

    Correct Answer
    A. The established right of police power of government
    Explanation
    Zoning laws have been held by the courts to be a valid exercise of the police power of the city or country

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  • 8. 

    An easement created when a person has been using a roadway without permission for over 20 years is called an: 

    • Easement by prescription

    • Easement in gross

    • Easement appurtenant

    • Easement by necessity

    Correct Answer
    A. Easement by prescription
    Explanation
    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.

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  • 9. 

    THE REAL ESTATE COMMISSION FOR A PROPERTY THAT IS IN PROBATE IS SET BY:

    • The real estate

    • The decedent

    • A court order

    • A probate officer

    Correct Answer
    A. A court order
    Explanation
    Commissions for property sold in probate are set by the individual court district.

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  • 10. 

    A PERSON WHO HELD A LIFE ESTATE LEASED A PROPERTY FOR FIVE YEARS AND THEN DIED. THE NEW OWNERS ORDERED THE LESSEE TO MOVE OUT. THE LEASE WAS:

    • Valid until the man died

    • Valid for the five years

    • Invalid from the beginning

    • Invalid unless deceased;s executed confirmed it

    Correct Answer
    A. Valid until the man died
    Explanation
    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.

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  • 11. 

    THE VALUE OF THE BEST PROPERTY IN THE NEIGHBORHOOD WILL BE ADVERSELY AFFECTED BY THE PRESENCE OF COMPARATIVELY SUBSTANDARD PROPERTY”, IS A STATEMENT RELATING TO VALUE AND IS KNOWN AS THE PRINCIPLE OF:

    • Balance

    • Contribution

    • Regression

    • Progression

    Correct Answer
    A. Regression
    Explanation
    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.

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  • 12. 

    IN A TYPICAL PERCENTAGE LEASE, RENT IS CALCULATED AS A PERCENTAGE OF:

    • Net taxable income of the lessee’s business

    • Asset’s of the lessee’s business

    • Gross sales of the lessee’s business

    • Net sales of the lessee’s business

    Correct Answer
    A. Gross sales of the lessee’s business
    Explanation
    A percentage lease is typified by the rent being calculated as a percentage of gross sales.

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  • 13. 

    Which of the following is an example of economic obsolescence?

    • A house that lacks modern equipment in the kitchen

    • A one-car garage

    • A house that needs maintenance due to putting it off

    • A toxic waste dump in the neighborhood

    Correct Answer
    A. A toxic waste dump in the neighborhood
    Explanation
    In the neighborhood is the key phrase, outside the property lines

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  • 14. 

    BROKER JOJO, AS AN AGENT, SHOWED A PROPERTY TO JUN. JUN SIGNED A DEPOSIT RECEIPT WHICH CONTAINED THE FOLLOWING WORDS: “BUYER TO ACCEPT THE PROPERTY IN AN “AS IS” CONDITION”. BROKER JOJO KNEW THAT THE PLUMBING IN THE PROPERTY WAS IN MAJOR STATE OF DISREPAIR WITH PARTS MISSING, BUT HE DID NOT TELL JUN. THE PROBLEM WITH THE PLUMBING WOULD NOT BE APPARENT TO AN ORDINARY, PRUDENT PERSON. IF JUN SUED THE SELLER FOR DAMAGES FOR FRAUD, THE COURT SUIT WOULD PROBABLY BE:

    • Unsuccessful because the “as is” provision in the deposit receipt shows that there is a mutual understanding of possible defects

    • Unsuccessful because the deposit receipt specifically state Buyer to accept the property in an “as is” condition

    • Successful because the duty to disclose a material fact cannot be avoided by an “as is” provision under the stated circumstances

    • Successful because “as is” refers only to obvious defects

    Correct Answer
    A. Successful because the duty to disclose a material fact cannot be avoided by an “as is” provision under the stated circumstances
    Explanation
    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.

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  • 15. 

    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”, REFERS MOST NEARLY TO THE PRINCIPLE OF:

    • Balance

    • Conformity

    • Substitution

    • Intervention

    Correct Answer
    A. Substitution
    Explanation
    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”.

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  • 16. 

    ALL OF THE FOLLOWING ARE GOOD AND VALID REASONS FOR AN APPRAISER TO MAKE A SEPARATE SITE AND IMPROVEMENT EVALUATION, EXCEPT:

    • Applying a residual technique

    • To determine building obsolescence

    • For taxation purposes

    • To determine amount of the appraiser’s fee

    Correct Answer
    A. To determine amount of the appraiser’s fee
    Explanation
    The appraiser’s fee would have nothing to do with a separate site and improvement evaluation

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  • 17. 

    Two brothers owned a property and decided to list it with Agent Tejasi. Thirty minutes before the listing appointment,   one  of the brothers was called out of town on an emergency. So, a friend signed the listing contract for him. Tejasi  had no idea that the person signing was not the owner. The status of the listing contract is:

    • Void

    • Valid

    • Uneforceable

    • Voidable

    Correct Answer
    A. Void
    Explanation
    Void. The listing must be signed by the parties who have the authority to sell.

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  • 18. 

    Agnes, Zelma and Jayne are sisters and own a property as joint tenants. Jayne sold her share to  Maggie. Upon closing, Maggie is a:

    • Joint tenant with Agnes and Zelma

    • Tenant in common with Agnes and Zelma

    • Tenant by the entirety with Agnes and Zelma

    • Tenant at will with Agnes and Zelma

    Correct Answer
    A. Tenant in common with Agnes and Zelma
    Explanation
    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.

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  • 19. 

    ABLE ADDED SOME CABINETS TO THE HOME HE OWNS. THE CABINETS ARE PERMANENTLY ATTACHED TO THE HOME. THE CABINETS HAVE BECOME REAL PROPERTY BECAUSE  ABLE HAS:

    • Created an encumbrance

    • Incorporated the cabinets into the land

    • Attached the cabinets into the chattel real

    • Created a lien

    Correct Answer
    A. Incorporated the cabinets into the land
    Explanation
    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.

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  • 20. 

    THE FOLLOWING IS TRUE WITH RESPECT TO RIPARIAN RIGHTS IS THAT:

    • The riparian must be adjacent to the stream and in the watershed of the stream

    • The riparian land owner has the absolute ownership of the adjacent water

    • Riparian rights must be expressly stated in the deed to such land

    • The ownership of the riparian rights can be determined from public records

    Correct Answer
    A. The riparian must be adjacent to the stream and in the watershed of the stream
    Explanation
    Riparian is from the Latin which means river. Riparian rights are rights belonging to property that are adjacent to rivers and streams.

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  • 21. 

    You are a real estate agent selling a house. You know that it has rusted pipes and that the seller is keeping this a secret. What is your professional responsibility in this situation?

    • You must recommend that the seller disclose the defect. Afterwards, the matter is out of your hands.

    • You must make a notation in your file that you have discovered a defect. This is so that evidence will be available if the matter ever becomes a lawsuit.

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

    • If the seller will not fix the rusted pipes, you must pay yourself to have them fixed

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

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  • 22. 

    Capitalization is the process by which annual net operating income is used to:

    • Determine cost

    • Estimate value

    • Establish depreciation

    • Determine potential tax value

    Correct Answer
    A. Estimate value
    Explanation
    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.

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  • 23. 

    WHICH OF THE FOLLOWING IS GENERALLY NOT RECOGNIZED AS A TEST FOR A FIXTURE:

    • The time when it was installed on the property

    • The adaptability of the object to the property

    • The intent of the person locating the object

    • The manner in which it is attached to the property

    Correct Answer
    A. The time when it was installed on the property
    Explanation
    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.

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  • 24. 

    WHICH OF THE FOLLOWING TYPES OF LENDERS WOULD HAVE THE GREATEST PERCENTAGE OF AND THE MOST FUNDS INVESTED IN REAL ESTATE MORTGAGES?

    • Savings and Loan associations

    • Commercial banks

    • Life Insurance companies

    • Mutual savings banks

    Correct Answer
    A. Savings and Loan associations
    Explanation
    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

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  • 25. 

    SINGLE FAMILY HOME VALUES ARE LEAST PROTECTED IN NEIGHBORHOODS WHERE THERE IS:

    • A similarity of income of the owners

    • A predominance of residents belonging to the same ethnic or religious group affiliation

    • A minimum of change to existing restrictions as a result of legal restrictions

    • An increasing mixture of average quality homes with high quality homes

    Correct Answer
    A. An increasing mixture of average quality homes with high quality homes
    Explanation
    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.

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  • 26. 

    RECORDED TITLE TO A PARCEL OF REAL PROPERTY WAS VESTED IN MARY WILSON, A SINGLE WOMAN. AFTER HE MARRIAGE TO JOHN ROBERTS, SHE EXECUTED A DEED TO THE PROPERTY ONLY IN THE NAME OF MARY ROBERTS, A MARRIED WOMAN. THE DISCREPANCY IN THE GRANTOR’S NAME IS:

    • Immaterial so long as the property is adequately described

    • A defect which may cause a cloud on the title

    • Cured after the deed is on record for one year

    • A defect which could cause separate property of both spouses to become joint tenancy property

    Correct Answer
    A. A defect which may cause a cloud on the title
    Explanation
    A cloud on title is a relatively unimportant condition affecting title. The discrepancy in names would cause such a cloud on title.

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  • 27. 

    Which of the following best describes the trustor?

    • Same as the trustee

    • Same as the beneficiary

    • Same as the borrower on the loan

    • Same as the vendor in a land contract

    Correct Answer
    A. Same as the borrower on the loan
    Explanation
    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.

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  • 28. 

    From the reproduction or replacement cost of a building the appraiser deducts depreciation, which represents:

    • The remaining economic life of the building

    • Remodeling cost to increase rental

    • Loss of value due to any cause

    • Cost to modernize the building

    Correct Answer
    A. Loss of value due to any cause
    Explanation
    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.

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  • 29. 

    In the income capitalization approach to value:

    • The reproduction or replacement cost of the building is computed

    • The capitalization rate must be estimated

    • The depreciation must be determined

    • The sales of similar properties must be considered

    Correct Answer
    A. The capitalization rate must be estimated
    Explanation
    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.

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  • 30. 

    One method an appraiser can use to determine a building reproduction cost involves the estimated cost of the raw materials needed to build the  structure, plus labor and indirect cost. This is called the:

    • Square foot method

    • Quantity survey method

    • Cubic foot method

    • Unit-in place method

    Correct Answer
    A. Quantity survey method
    Explanation
    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.

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  • 31. 

    IF A MAN HAS A FREEHOLD ESTATE, WHICH OF THE FOLLOWING WOULD RESULT IN HIS HAVING A LESS THAN-FREEHOLD ESTATE:

    • Sale and lease-back

    • Selling the mineral rights to a third party

    • Giving a leasehold interest for 5 years

    • Granting a life estate

    Correct Answer
    A. Sale and lease-back
    Explanation
    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.

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  • 32. 

      IN ORDER FOR A DEED OF TRUST TO VALID AND ENFORCEABLE , IT MUST CONTAIN A CLAUSE REQUIRING THE TRUSTOR TO:

    • Have the property insured against fire and other hazards

    • Pay assessment taxes before they become delinquent

    • Comply with health laws and police regulations

    • None of the above

    Correct Answer
    A. None of the above
    Explanation
    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.

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  • 33. 

    WHICH OF THE FOLLOWING IS AN ADVANTAGE OF THE MARKET DATA APPROACH TO VALUE IN THE APPRAISAL PROCESS:

    • It provides an accurate forecast of long range values

    • Often comparison properties are numerous

    • Amenities are easy to compare

    • It is the simplest of the approaches to learn and to use

    Correct Answer
    A. It is the simplest of the approaches to learn and to use
    Explanation
    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.

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  • 34. 

    Real property can be converted into personal property through?

    • Severance

    • Accession

    • Conversion

    • Inference

    Correct Answer
    A. Severance
    Explanation
    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.

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  • 35. 

    It refers to the acquisition of lots varying ownership, through purchase on expropriation for the purpose ofplanned and rational development  and socialized housing program without individual boundary restrictions:

    • Land Banking

    • Land Swapping

    • Land Assembly

    • Land Use Plan

    Correct Answer
    A. Land Assembly
    Explanation
    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.

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  • 36. 

    A provision in a mortgage contract which releases the property from the encumbrance when the obligation is fully paid is:

    • Automatic Redemption Clause

    • Non-liability clause

    • Defeasance Clause

    • Exculpatory Clause

    Correct Answer
    A. Defeasance Clause
    Explanation
    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.

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  • 37. 

    AN ALIENATION CLAUSE PROVIDES THAT:

    • The principal amount of the loan, plus accrued interest, is due in the event of the sale of the property

    • The mortgage is security for a promissory note

    • A lien can be placed on the property that takes precedence over a prior recorded trust deed

    • None of the above

    Correct Answer
    A. The principal amount of the loan, plus accrued interest, is due in the event of the sale of the property
    Explanation
    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.

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  • 38. 

    WHICH OF THE FOLLOWING ACTIONS OR EVENTS WOULD RESULT IN THE TERMINATION OF A SALES ESCROW?

    • Revocation of the escrow instructions by the broker of the seller

    • The cancellation of the escrow by either party

    • The mutual consent of the parties

    • The death of either of the parties

    Correct Answer
    A. The mutual consent of the parties
    Explanation
    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.

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  • 39. 

    ABLE OWNED A FARM PROPERTY ON WHICH HE HAD A GROWING CORN CROP. BEFORE HARVEST, HE SOLD THE PROPERTY TO BAKER. IT WAS HIS INTENTION TO HARVEST THE CROP AFTER THE SALE EVEN THOUGH THIS WAS NOT STATED IN THE SALES AGREEMENT. THE FOLLOWING WOULD BE TRUE REGARDING THE CORN CROP:

    • Baker cannot claim the crop as it would be considered personal property

    • Able’s intent would take precedence over the sales agreement

    • Able would have the right to harvest the crop as this was his intention

    • The crop would go with the land as it is considered real property

    Correct Answer
    A. The crop would go with the land as it is considered real property
    Explanation
    Growing crops on land are presumed to go with the land when the land is sold unless other agreements have been made

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  • 40. 

    The acquisition of land in advance of actual need based on present value for future planned development is referred to in the Urban Land Reform  Law as:

    • Land Assembly

    • Land Banking

    • Urban Renewal

    • New Settlement Development

    Correct Answer
    A. Land Banking
    Explanation
    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.

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  • 41. 

    WITH REGARD TO APPRAISAL TECHNIQUES, ALL OF THE FOLLOWING ARE CORRECT, EXCEPT:

    • The cost approach is difficult to use, due to the great amount of knowledge needed regarding the current economic factors involved

    • The cost approach is most effective on new buildings

    • The cost approach is generally used when appraising public service buildings

    • The cost approach sets the lower limit of value

    Correct Answer
    A. The cost approach sets the lower limit of value
    Explanation
    The cost approach tends to set the upper limits of value.

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  • 42. 

    Negligent misrepresentation occurs when:

    • There is intentional misrepresentation of a material fact by a broker in order to take financial advantage of another.

    • The agent showing the property exaggerates the property's benefits.

    • A broker should have known that a statement about a material fact was false.

    • The broker or agent tells the seller to intentional lie about a property defect so they can get a quick sale

    Correct Answer
    A. A broker should have known that a statement about a material fact was false.
    Explanation
    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”.

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  • 43. 

    Property held by the owner as inventory or stock in a trade for a buy and sell business, or used on connection withtrade, business or source of income is:

    • A. Capital Asset

    • B. Ordinary Asset

    • C. Fixed Asset

    • D. Intangible Asset

    Correct Answer
    A. B. Ordinary Asset
    Explanation
    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.

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  • 44. 

    THE  REMEDY OF UNLAWFUL DETAINER ACTION IS USED BY OFFENDED:

    • Grantors

    • Holders of notes in default

    • Lessors

    • Trustors

    Correct Answer
    A. Lessors
    Explanation
    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

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  • 45. 

    A TRUE STATEMENT REGARDING FLOOD WATERS IS THAT FLOOD WATERS:

    • Refer to water minor depths, either standing or flowing, which do not produce serious surface scour or leave deposits of silt.

    • Refer to water on the surface of the land but lower than the water table in the area

    • Are deemed the enemy of every affected owner and owner may protect their property by employment any reasonable protective measures

    • Are found below the water table, at the water table, and above the water table

    Correct Answer
    A. Are deemed the enemy of every affected owner and owner may protect their property by employment any reasonable protective measures
    Explanation
    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.

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  • 46. 

    WHEN LEGAL TITLE IS TRANSFERRED AS THE RESULT OF THE SALE OF REAL ESTATE ENCUMBERED BY A DEED OF TRUST, IT IS ALWAYS NECESSARY:

    • To obtain the consent of the beneficiary

    • To pay off the beneficiary

    • For the grantor to deliver a deed

    • To completely refinance

    Correct Answer
    A. For the grantor to deliver a deed
    Explanation
    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

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  • 47. 

    A FLOOD HAZARD AND DRAINAGE REPORT MAY BE REQUIRED IN THE FILING FOR THE SUBDIVISION FINAL PUBLIC REPORT. IF A HAZARD EXISTS, THE DEGREE OF HAZARD MUST BE REPORTED. THE THREE DEGREES OF FLOOD HAZARD ARE:

    • Below the water table, at the water table, above the water table

    • Inundation, sheet overflow, ponding of local storm water

    • Frequent, infrequent and remote

    • Accretion, avulsion and alluvion

    Correct Answer
    A. Inundation, sheet overflow, ponding of local storm water
    Explanation
    This is a statement of fact regarding flood hazards.

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  • 48. 

    AN EASEMENT ON REAL PROPERTY CAN BE TERMINATED BY:

    • A conveyance of the servient tenement to a third party

    • Being revoked by the party granting the easement

    • An express release from the servient tenement holder

    • A release signed by the holder of the dominant tenement

    Correct Answer
    A. A release signed by the holder of the dominant tenement
    Explanation
    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.

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  • 49. 

    Permission to use  another's  property that may be withdrawn at will is:

    • An easement appurtenant

    • A license

    • An encroachment

    • A deed restriction

    Correct Answer
    A. A license
    Explanation
    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.

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Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 16, 2013
    Quiz Created by
    Zaldyt

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