Va Real Estate Exam 1

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Wilesaustin
W
Wilesaustin
Community Contributor
Quizzes Created: 1 | Total Attempts: 377
| Attempts: 377 | Questions: 150
Please wait...
Question 1 / 150
0 %
0/100
Score 0/100
1. A valid escrow requires which of the following:

Explanation

These are required for a valid escrow.

Submit
Please wait...
About This Quiz
Va Real Estate Exam 1 - Quiz

VA Real Estate Exam 1 assesses key concepts in real estate finance, law, and market operations. It evaluates understanding of mortgage yields, loan securities, escrow requirements, and implications... see moreof financial ratios and insurance policies in real estate transactions. see less

2. Lender’s use the term “debt-income ratio” to refer to a:

Explanation

Debt income ratio indicates the fraction that your loan payment on the property is in
relation to the net income from the property. This is used by lenders when qualifying a
person for an income property loan and measuring their margin of safety.

Submit
3. The Real Estate Commissioner would be prevented from proceeding with a formal action
against the license of a real estate broker by the:

Explanation

The accusation must be filed within three years of the occurrence of the act which is
considered grounds for revocation or suspension of the license.

Submit
4. You sell a note with a face value of $12,000 for $10,000. You are:

Explanation

Any time you sign a note or sell a note and the amount you receive is less than the account
stated on the face of the note you are ‘discounting the note’.

Submit
5. To minimize risk, a lender looks at:

Explanation

A lender looks at the loan-to-value ratio to minimize risk. This ratio compares the amount of the loan to the appraised value of the collateral (usually a property). A higher loan-to-value ratio indicates a higher risk for the lender, as the borrower has less equity in the collateral. By considering this ratio, the lender can assess the level of risk associated with the loan and make an informed decision on whether to approve it or not.

Submit
6. A minority purchaser enters your office and states they are looking for, and interested in,
purchasing a particular property in a minority neighborhood. You could legally assume that:

Explanation

Should any prospective purchaser enter your office requesting to see a particular property,
you would assume they were interested in that particular property.

Submit
7. Which of the following phrases will best describe the nature of a broker’s duty to keep his
principal informed:

Explanation

A fiduciary obligation is a relationship of trust and confidence. The broker has loyalty to
his principal and must keep him fully informed.

Submit
8. When a broker misrepresents his principal’s property to a buyer, he could cause his
principal to be subject to:

Explanation

The principal is responsible for his agent’s actions. If misrepresentation occurs, there
should be a rescission of the sale or civil court action for damages.

Submit
9. A buyer defaults on a loan, therefore the lender would be able to cause the promissory note
to become due and payable. This clause is a/an:

Explanation

Acceleration clauses are several different types and reasons.

Submit
10. A salesman receives a deposit together with a written offer to purchase and delivers them to
the employing broker who presents it to the seller. The seller signs and accepts the offer.
Without the consent of the salesman and through no fault of his own, the buyer and seller
instruct the salesman’s employing broker to return the deposit. Which of the following is true?

Explanation

Once the offer has been accepted, the deposit money belongs to the seller. If the seller
instructs the broker to return the deposit, the broker must do so. The broker has probably
earned a commission and may sue the seller for the amount but may not hold the deposit
money.

Submit
11. An “able buyer” means one:

Explanation

Any of these would indicate an ‘able’ buyer.

Submit
12. If the loan-to-value ratio is low:

Explanation

Loan to value ratio is the ratio of the loan to the appraised value. If a 90% loan to value
ratio is given by a lender, that indicates a 10% down payment, and a beginning equity of
10%. If the loan to value ratio is only 60%, the down payment is 40% and the beginning
equity is 40%. The lower the loan, the higher the equity.

Submit
13. Broker Young, as an agent, showed a property to James. James signed a deposit receipt
which contained the following words: “Buyer to accept the property in an “as is” condition”.
Broker Young knew that the plumbing in the property was in a major state of disrepair with
parts missing, but he did not tell James. The problem with the plumbing would not be apparent
to an ordinary, prudent person. If James sued the seller for damages for fraud, the court suit
would probably be:

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.

Submit
14. The mortgage loan which permits borrowing additional funds at a later date is called a/an:

Explanation

A loan which permits one to add to the unpaid balance of the loan without rewriting the
note is said to be an open end loan.

Submit
15. According to the Truth-in-Lending Act, consumers must be informed of credit terms by
the:

Explanation

According to the Truth-in-Lending Act, the responsibility for informing consumers of credit terms lies with the lender. The lender is the entity that provides the credit to the consumer, and therefore, it is their duty to ensure that the consumer is fully aware of the terms and conditions associated with the credit. This includes disclosing information such as the interest rate, fees, and repayment schedule. The lender plays a crucial role in ensuring transparency and fairness in credit transactions, as mandated by the Truth-in-Lending Act.

Submit
16. A second offer received on a property prior to the seller’s decision on the first offer should
be:

Explanation

All offers must be submitted immediately.

Submit
17. A buyer of a residence, prior to the close of escrow, asks the broker for permission to move
into the property. The broker should:

Explanation

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

Submit
18. Comparing an installment note to a straight note, the straight note will have:

Explanation

The correct answer is "No principal payments during the term of the loan except on the last payment." This means that with a straight note, the borrower does not make any principal payments throughout the term of the loan, except for the final payment. In contrast, an installment note would require the borrower to make equal annual principal reduction payments, meaning that they would be paying off a portion of the principal amount each year. Additionally, the straight note will have a higher total effective interest rate compared to an installment loan.

Submit
19. A primary justification for zoning ordinances is to:

Explanation

Zoning laws are exercise of the police powers which are for the public health, safety,
morals and general welfare. No compensation need be paid in exercise of police power,
as they are for public protection.

Submit
20. In portfolio risk management, a lender considers:

Explanation

In portfolio risk management, a lender determines what type of loans to have in his
portfolio. Factors are: How quickly can I sell these loans? What are my reserves? How
diversified are these loans? Are they all business? Are they all residential? Are they a
mixture of business and residential?

Submit
21. An attorney drew up a contract between a buyer and a seller for the purchase of a property.
The agreement included a liquidated damages clause calling for the payment of $500 in the
event the buyer should default. Prior to the close of escrow, the buyer decided that the home
would not suit his family and canceled the purchase. If the seller were to sue for specific
performance, he would most likely be:

Explanation

Since both buyer and seller agreed to the liquidated damages, the seller has agreed that if
the buyer defaults, his sole claim will be to the $500.

Submit
22. Which of the following is not a necessary element in the formation of a contract:

Explanation

Two parties may enter into a contract, but they might not fulfill (perform) their obligations.

Submit
23. A lender possessing a chattel mortgage may:

Explanation

Re-emphasizing a prior question concerning the terms: alienate, hypothecate and assess. A
chattel mortgage is a mortgage secured by personal property. Such a mortgage may be
used as security for an additional loan. When the property is put up as security for a loan
and one retains possession, it is said to be hypothecated. Personal property may be
assessed for personal property taxes and/or federal estate taxes.

Submit
24. Certain charges are prohibited by the Real Estate Settlement Procedures Act in selling a
house. Buyer or seller may legally be charged for all of the following except:

Explanation

Disclosure statements required by RESPA must be provided the borrower at no cost.

Submit
25. Property management, appraisal, financing, and development are all examples of

Explanation

All are specializations in the field of real estate. Appraisal and financing do not require (real estate) broker supervision.

Submit
26. Which of the following factors is most likely to influence demand for real estate?

Explanation

When wage levels and job expansion are increasing, workers are more likely to buy real
estate; when wages are stagnant or declining, they hold back from making big purchasing
commitments. Effective demand requires not only the desire to purchase a product, but
also the financial means to do so.

Submit
27. In addition to certain municipal or county regulations which apply to the construction of a
subdivision, such as zoning laws and the State Map Act, other government regulations may be
imposed upon the subdivision by:

Explanation

All three choices may impose additional regulations which apply to the construction of a
subdivision.

Submit
28. The cost approach used on a residence built in 1912 would require:

Explanation

The cost method requires the determination of replacing the improvements ‘new’ at
today’s costs of labor and material, then adjusting the ‘new’ estimate downward by
estimated accrued depreciation.

Submit
29. A licensed real estate broker working under a typical exclusive listing incurs several expenses. He is not entitled to be reimbursed for these expenditures, unless:

Explanation

A seller is not obligated to reimburse the expenses of the broker unless those expenses are
authorized by the seller.

Submit
30. After acquired title is conveyed in any trust deed for the benefit of the beneficiary. It
conveys:

Explanation

‘After acquired title’ refers to title to fixtures or other real property items, that become
part of the land that is securing the existing trust deed. If a lot serving as security for a
loan made ten years ago has land affixed to it, that land becomes encumbered with the
lien made ten years ago. If additional improvements, such as a swimming pool, added
bedroom or new landscaping are added to the real property, they to become encumbered
with a trust deed lien made ten years ago.

Submit
31. During Broker Shaw’s preparation of the Exclusive Authorization and right to Sell on
Seller Norman’s property, Norman asked that a clause be included which would require the
buyer to accept primary liability in connection with the existing loan is transferred to the buyer.
Shaw should enter with of the following in Paragraph 2 of the Exclusive Authorization and
Right to Sell from:

Explanation

If a buyer assumes an existing loan, he accepts primary liability for that loan.

Submit
32. Concerning business opportunities:

Explanation

All are true.

Submit
33. A loan created with more than one borrower is usually added to the promissory note for the
protection of the lender:

Explanation

When there is more than one borrower on the note, the promise and obligation to pay that
balance is the responsibility jointly of all the co-borrowers, and also each individual is
severally liable for the full debt. Severally, in law, means individually.

Submit
34. A loan for which interest-only payments are made is:

Explanation

A straight note has no payment of principal on the installment basis and principal is due at
maturity. When interest only is paid, the no principal is paid until maturity.

Submit
35. A third party who takes a promissory note that is complete and regular and has no
knowledge of any defects is known as a/an:

Explanation

The party that accepts the endorsed note from the original payee,without knowledge of
any defects is known as the holder in due course.

Submit
36. In general, when the supply of a certain commodity increases,

Explanation

If demand is constant and supply increases, sellers compete with each other by lowering
prices.

Submit
37. A new well and pump were installed on a parcel of land. For property tax assessment
purposes, the county assessor would consider these as:

Explanation

A well and pump would be improvements to the real property.

Submit
38. A clause in a trust deed providing that the rights of the beneficiary are secondary to those
of holders of subsequently recorded trust deed is known as a/an:

Explanation

A subordination clause in a trust deed and a note agrees that the borrower may place an
additional trust deed lien against the property in the future which will be prior in rights to
this presently recorded trust deed. By agreeing to the subordination clause, the lender
agrees that he will give up his recorded priority.

Submit
39. When a legal description uses only sections, townships and ranges, the lines relate to the:

Explanation

Sections, townships and ranges are used in government surveys in describing the location
of land. Metes and bounds description outlines a certain area.

Submit
40. Which of the following would normally install conduit?

Explanation

Electrical wiring is placed inside a metal pipe called a conduit.

Submit
41. Where a broker show a client’s property to a prospective buyer that is listed with the broker
under an open listing, the broker should:

Explanation

Notifying the seller establishes the broker’s right to collect a commission as “procuring
cause”. Answer “c” provides the only effective way of establishing that right.

Submit
42. An offer to purchase real property was signed by a prospective buyer on October 2, 1977.
The terms of the offer allowed five days for acceptance by the seller. Because of an illness in
the seller’s family, the seller did not accept the offer until October 10, 1977. Which of the
following statements is correct?

Explanation

This constitutes only an offer and one method of terminating an offer is the expiration of a
specified or reasonable length of time for the acceptance to be communicated.

Submit
43. Which of the following loans is exempt from the Truth-in-Lending Law?

Explanation

The Truth-in-Lending Law state that an installment loan is one that is payable in four or
more installments. Agricultural loans are not controlled by this law. Any loan for those
properties (answers “a”, “b” and “c”) that have four or more payments would be under
the Truth-in-Lending Law.

Submit
44. If a man has a freehold estate, which of the following would result in his having a lessthanfreehold
estate:

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.

Submit
45. A major manufacturer of automobiles announces that it will relocate one of its factories,
along with 2,000 employees, to Smallville. What effect will this announcement likely have on
Smallville’s housing market?

Explanation

The expected arrival of 2,000 employees and their families in a small town will cause
sellers to raise their prices in expectation of the greatly increased demand and the long
time it takes to build new housing. It becomes a “sellers’ market” and the many buyers
will have to compete for the few houses available.

Submit
46. Generally, the most important determinant of a property’s value is:

Explanation

Location is the most important factor influencing value, the other factors being utility,
size, shape, thoroughfare conditions, exposure, character of the business climate,
plottage or assemblage, character of the soil, grades, obsolescence, building restrictions
and zones.

Submit
47. Many real estate contracts are in writing on forms. Parts of these contracts are written and parts are printed. In the interpretation of such contracts:

Explanation

As regards to contracts, the written takes preference over the printed parts and oral agreements take preference only when the written contract is incomplete or ambiguous.

Submit
48. Which of the following is the classic definition of the boundaries of real property?

Explanation

The surface of the earth and the material beneath the surface to the center of the earth is
part of the real property. Since airways are now public domain, the ownership of airspace
is ‘use to an enjoyable and reasonable height’.

Submit
49. Able sold six unencumbered properties to Baker. Part of the purchase price is a loan made
by Able that is secured by a deed of trust on the six properties. This document is a/an:

Explanation

A blanket encumbrance is created when more than one property is placed as security for a
note and trust deed. Six properties are security for a single note and deed of trust,
therefore it is a blanket encumbrance.

Submit
50. What document is issued when a judgment for sale of the property is made by the court:

Explanation

A judgment by the court ordering the sale of property is known as Writ of Execution. An
attachment holds property for court judgment. An abstract of judgment is a written
decision of the court, when recorded creates a lien. A sheriff’s deed is issued to the
holder of a certificate of sale after the one year redemption period has passed under the
terms of the mortgage foreclosure proceeding.

Submit
51. Which of the following best describes a ‘complete’ escrow?

Explanation

The settlement in choice “c” describes a ‘complete’ escrow. Usually an escrow is
‘complete’ in the evening and closes the following morning when the deed is recorded.

Submit
52. You pay the most points under which type of financing:

Explanation

Anyone may pay the loan fees for a conventional loan. FHA and VA limit the buyer to
paying a maximum one point loan fee. Cal-Vet does not charge loan fees.

Submit
53. Mr. and Mrs. Johnson who had been shopping for a new home found one that they liked
very much but because they felt the property was overpriced, they decided not to buy it. Their
reason for not buying was probably based upon the Principle of:

Explanation

It must be assumed that our buyer has found another home that was equally desirable but
at a much lower price. This is the idea behind the Principle of Substitution.

Submit
54. The seller completed Paragraph 2 of the Exclusive Authorization and Right to Sell form as
follows: “The price of the property shall be in an amount sufficient to pay the broker’s
commission, all selling and transfer costs plus the sum of $20,000 cash to the seller”.
Paragraphs 3a and 3b were not completed. Such wording would indicate that this
Exclusive Authorization and Right to Sell may be:

Explanation

A net listing is one in which the seller indicates the net amount he wishes to receive at the
close of the transaction. He does not agree to pay the broker a certain percentage of the
selling price, but expects the broker’s commission, plus all other expenses to come above
the net figure.

Submit
55. Capitalization is an appraisal process used to:

Explanation

Capitalization of income is a method of establishing the value of income type properties.

Submit
56. Fish owns a lot. He also owns a right of way easement over the property of his neighbor,
Smith. This easement is appurtenant to Fisk’s lot. Fisk sells his lot to Jones without specific
mention of the easement in the deed. The easement:

Explanation

Appurtenant easements ‘run with the land’ and automatically pass to future grantees,
whether mentioned in the deed or not.

Submit
57. A loan that is secured on easy terms and with a low down payment usually results in:

Explanation

The lender is not going to be given easy terms or long term financing without securing
something in return. This usually results in increase financing costs.

Submit
58. The right to foreclose a trust deed, under a trustee’s power of sale, outlaws:

Explanation

A trust deed is not a contract, but rather a conveyance of the naked legal title with the
power of sale from the trustor to the trustee. Therefore, the trustee retains the right to sell
the property under the trust deed at any time for the benefit of the beneficiary. The
conveyance has been performed and thus is not under the Statute of Limitations;
therefore, it never ‘outlaws’.

Submit
59. Which of the following is a legal term used to describe the entire parcel of real property and
all structures on such property?

Explanation

When you consider the condominium units as well as the common areas, you have a
condominium project.

Submit
60. A buyer defaults in making payments on a loan, therefore the lender’s action probably
would result in:

Explanation

Acceleration indicates the right to declare the entire sum of a note to be due and payable
immediately. Most trust deeds contains several acceleration clauses. Most common states: “if you become delinquent in the payment on this note, the entire sum of the note
becomes due and payable immediately. Another states: “The entire sum of the note is due
upon the sale or transfer of the property”. – triggered by the sale of the property and
therefore is a specific “acceleration clause”. The rule is: alienation clauses are types of
acceleration clauses but not all acceleration clauses are alienation clauses.

Submit
61. A licensee who has several years of experience in the industry decided to retire from
actively marketing properties. Now she helps clients choose among the various alternatives
involved in purchasing, using, or investing in property. What is her profession?

Explanation

Advising and guiding investors and other buyers is counseling them. Many states require
a person to have a real estate license to serve as a real estate advisor/counselor for a fee,
since it involves skills and duties closely related to real estate brokerage.

Submit
62. The lender’s first line of defense in making a loan is:

Explanation

The lender's first line of defense in making a loan is the loan-to-value ratio. This is a financial ratio that compares the amount of the loan to the appraised value of the property being used as collateral. It helps the lender assess the risk associated with the loan and determine the amount of financing that can be provided. A lower loan-to-value ratio indicates a lower risk for the lender, as there is more equity in the property to cover potential losses. Therefore, the loan-to-value ratio is an important factor in the lender's decision-making process.

Submit
63. Broker Stiles took a listing from a seller using the standard listing form. One week before
the listing expired, the broker informed the seller that he had a prospective buyer named
Bennett. After the listing expired, the seller listed with Broker Johnson. Johnson showed the
property to Mr. Bennett and obtained an offer that was accepted. Under these circumstances:

Explanation

In the safety clause of the standard listing form, Broker Stiles would agree to relinquish
his safety period if the property were listed with another broker.

Submit
64. What are impounds usually called?

Explanation

The first half of real property taxes become delinquent on December 10.

Submit
65. Sellers are usually reluctant to cancel an existing transferable fire insurance policy in the
event of a cash sale, due to the fact that:

Explanation

A seller on a cash sale would be reluctant to cancel an existing transferable fire insurance
policy because the seller would receive a short term cancellation rate. Therefore, the seller
would prefer to transfer the existing policy to the buyer.

Submit
66. The words Broker and REALTOR® are

Explanation

Brokers are licensed by their state; REALTORS® are voluntary members of the NAR, a
trade association.

Submit
67. The Federal Right to Cancellation from must be given the borrower by the agent if:

Explanation

If the borrower's residence is being used as security for the loan, then the Federal Right to Cancellation form must be given to the borrower by the agent. This means that if the borrower defaults on the loan, their residence can be seized by the lender to recover the amount owed. The Federal Right to Cancellation form provides the borrower with information about their right to cancel the loan within a certain timeframe, typically three days, if they change their mind about borrowing the money.

Submit
68. A contract which, according to the Statute of Frauds, must be in writing in order to
maintain a court action for enforcement is:

Explanation

Statement of fact.

Submit
69. With an open end mortgage, the:

Explanation

An open end mortgage is the type that allows additional funds to be borrowed up to the
agreed face amount of the loan without rewriting or re-qualifying on the note. This allows
one to stay in debt into the unknown future.

Submit
70. A subordination clause in a trust deed may:

Explanation

A subordination clause written into a loan gives a lower (secondary) position to that loan
if another loan is recorded later.

Submit
71. Able submitted an offer to purchase Blackacre. During the escrow period a local credit
reporting agency submitted detrimental information which Able contested. Able made repeated
attempts to get the matter corrected and he was denied access to the information reported to the agency. Able may:

Explanation

All choices are open to the principal in question.

Submit
72. A lessee’s interest is:

Explanation

All three choices refer to the lessee’s interest in real property. Always keep in mind that a
lessee’s interest is personal property known as chattel real.

Submit
73. The one unity in a joint tenancy holding that is also present in tenancy-in-common holding
is:

Explanation

Under any type of ownership, each owner has an equal right of possession. This means
that any owner can go anywhere on the property regardless of the percentage of their
overall interest.

Submit
74. To alienate title to real property, one would:

Explanation

The term ‘alienate’ means to transfer or convey. To alienate title means to convey it.

Submit
75. A REALTOR® is best described as an individual who is

Explanation

People are licensed by their respective states to be real estate brokers and salespersons. A
licensee who then joins the National Association of REALTORS®, is called a
REALTOR®; one who joins the National Association of Real Estate Brokers is called a
Realtist.

Submit
76. The north ½ of the north ½ of the east ½ of the northwest ¼ of section 4, and the west ½
of the northwest ¼ of the northeast ¼ of section 5, together contain:

Explanation

Section 5 = 640 acres and + Section 4 = 640 acres
NE ¼ = 160 acres NW ¼ = 160 acres
NE ¼ = 40 acres E ½ = 80 acres
W ½ = 20 acres N ½ = 40 acres
N ½ = 20 acres
20 acres + 20 acres = 40 acres

Submit
77. Option to renew a lease is a:

Explanation

An option to renew a lease is a promise by the lessor to do so in the event the lessee
desires it. A promise in a contract is a ‘covenant’.

Submit
78. Which of the following items could not be used by the owner of a hardware store as security
for a loan, under the provisions of the Uniform Commercial Code?

Explanation

As the stock will be sold, it cannot be used to secure a loan.

Submit
79. A subdivider and developer purchased considerable acreage and now plans to construct a
tract of 40 homes. In arranging the financing for the new construction, the lender has agreed
to advance part of the funds immediately and will release a set amount of additional money as
each home is completed. The funds that will be forthcoming as construction progresses are
known as:

Explanation

This type of construction financing is referred to as obligatory advances or fixed
disbursement schedule.

Submit
80. In appraisal practice, all of the following are accepted methods of computing the estimate
of a building cost, except:

Explanation

Choices “b”, “c” and “d” are all methods of estimating the building cost; “a” is the method
used to estimate value of vacant land.

Submit
81. Real property would include:

Explanation

None of the possible answers to this question is real property. A tax lien and a trust deed,
although having to do with real property, are not real property. Oil which has been
‘captured’ is personal property.

Submit
82. A release clause:

Explanation

A construction loan for a tract of homes might be $100,000,000. Each home is
encumbered with a lien for $100,000,000. Example: if you wish to remove one of the
homes from that lien, then the release clause will permit you, upon payment of $100,000
to have one home removed.

Submit
83. According to the Truth-in-Lending Law, to advertise the following is an illegal
advertisement regarding real estate loans:

Explanation

The Truth-in-Lending Law concerning advertising contains what are known as “triggers”.
If you place an ad with a statement about the amount of down payment, then you must
state all the facts: the APR, the amount of monthly payment and the length of the loan.

Submit
84. Two people entered into a land contract for the purchase of a home and the contract was
recorded. A few months later, the vendee abandons the property and defaults on the contract.
If the vendee refuses to execute and record some form of release, it will:

Explanation

A recorded land contract show an equitable interest in the property. When the vendee
(buyer) defaults and abandons the property the land contract becomes a “cloud on the
title” until it is removed by either a quitclaim deed or a quiet title action.

Submit
85. An offer by one of the parties to a real estate transaction to carry out that party’s part of the contract is called a:

Explanation

Usually made at the conclusion of the transaction, the tender is the offer to perform on the
terms agreed to. If the other party cannot perform, then the party that made the tender can
rightfully claim the other party defaulted.

Submit
86. An alienation clause provides that:

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 without the
consent of the lender.

Submit
87. Prior to the sale of a subdivision, a subdivider must show proof to the Real Estate
Commissioner that:

Explanation

The Real Estate Commissioner is very much concerned that parcels of land in a
subdivision be capable of being used for the purposes stated in the final report. The
parcels may be sold without utilities, as long as they were not included in the report filed
by the subdivider. Assessment bonds would be for sewers, street lights, curbs, etc.

Submit
88. To use the capitalization approach to appraising you need the:

Explanation

In appraising income property, it is necessary to know the net income of the property in
order to use the capitalization approach. Such net income is calculated by subtracting
from the gross income nearly all expenses except the debt service.

Submit
89. Mortgage yield is best described as:

Explanation

Mortgage yield refers to the effective interest return obtained by an investor from a first trust deed. This means that it represents the rate of return or profit that an investor receives from investing in a mortgage-backed security. It takes into account the interest payments received from the borrower, as well as any fees or costs associated with the loan. Therefore, the correct answer is "The effective interest return obtained from a first trust deed by an investor."

Submit
90. The best definition of a straight note is:

Explanation

A straight note has no principal payments and principal is due all at one time.

Submit
91. Which is true concerning an option:

Explanation

All of these statements are true. Read them over again.

Submit
92. In which of the following ways may an agency relationship not be created:

Explanation

Subordination means lie, trickery or deceit; hence, it cannot be a valid way to create an
agency.

Submit
93. RESPA requires delivery of the uniform settlement statement not later than:

Explanation

Upon request, the lender must allow the borrower to inspect the uniform settlement
statement one day prior to the close of the transaction but the statement must be delivered
only at or before the date of settlement.

Submit
94. Daniels purchased 60 acres of land near a city. He intended to subdivide it for sale as
single family residential lots and sell the lots for cash. Daniels needs maximum financing to
put in streets, curbs, gutters, sidewalks, etc. He wants to pass the cost of these to the lot
purchasers in such a way that when title policies are issued to future lot owners, the policies
will contain no reference to assessment liens for the above stated purposes. Daniels best course
for financing these needs will probably be:

Explanation

Answer ‘b’ would result in assessment liens; answers “a” and “d” are not specifically
financing means for such improvements, by elimination, answer “c” is the best choice.

Submit
95. Mr. Smith borrowed money on a term note at an interest rate of 7.2%. He paid monthly
interest of $60. How much did he borrow?

Explanation

$60 x 12 = $720
$720 divided by 0.072 = $10,000

Submit
96. A person and his property that is encumbered by a first deed of trust are in Chapter 7
bankruptcy. The:

Explanation

A Chapter 7 bankruptcy petition creates an Automatic Stay of a creditor’s foreclosure
against the debtor. Creditor must file a petition with the Bankruptcy Court seeking
relief from the Automatic Stay and approval to institute foreclosure action. If the note
is over-secured by collateral, the Bankruptcy Court trustee may sell the property, pay
the secured creditor and use the excess proceeds to pay unsecured creditors. If the
debtor does not make payments on the note during the Automatic Stay, the Bankruptcy
trustee will pay interest to the secured creditor from the date of petition to the date of
sale.

Submit
97. State and county law require documentary transfer tax be paid at the time a deed to
transfer ownership is recorded, except:

Explanation

The documentary transfer tax need not be paid at the time a deed is recorded if the
consideration or value of the interest, or property conveyed, exclusive of the value of any
liens or encumbrances remaining thereon, does not exceed $100.

Submit
98. Real property includes the land, those things attached to the land, and thing called
appurtenances. Appurtenances include all of the following except:

Explanation

Trade fixtures are considered personal property.

Submit
99. How many acres are in the west ½ of the south ½ of the south ½ of the south ½ of section
27?

Explanation

Section 27 = 640 acres
S ½ = 320 acres
S ½ = 160 acres
S ½ = 80 acres
W ½ = 40 acres

Submit
100. A prospective client calls you and asks you to take a listing on his property. In review his
papers you discover he is purchasing the property on a contract of sale that has no acceleration
clause, and that has no provision in the contract prohibiting a resale or an assignment. Which
of the following is the most nearly correct statement? Your client could:

Explanation

A party purchasing property under a land contract of sale may sell their interest without
difficulty by assigning the contract, provided there is no prohibition on the agreement.
The assignee would still be secondarily liable for some of the terms of the contract unless
the seller’s approval was obtained.

Submit
101. Which of the following factors primarily affects supply in the real estate market?

Explanation

Population, demographics and employment impact demand for a commodity, but
government fiscal (spending and taxing) policies strongly influence availability and cost
of credit for those who produce things to be sold (like new homes).

Submit
102. After the due date Able makes a payment on a mortgage loan. By statute, the payment on
the loan is considered late when received by the lender on:

Explanation

“By statute” – most lenders allow longer (i.e. 15 days) but this law establishes the
minimum.

Submit
103. A homeowner secures a $4,800 home improvement loan to install a sauna bath. If the
payments on the loan are designed in 48 equal monthly principle payments, plus simple interest
at 10% per annum, what is the total amount of the third payment?

Explanation

$4,800 divided by 48 (payments) = $100 (principal)
$4,800 - $200 (payments made) = $4,600 (balance at 10% interest)
$4,600 divided by 0.10 = $460 (annual interest)
$460 divided by 12 (months) = $38.33 (interest per month)
$100.00 (principle) + $38.33 (interest) = $138.33

Submit
104. Should a person be discriminated against, what would best describe the actions available to
them?

Explanation

As discrimination is not a criminal act, we would eliminate answers “c” and “d”. “b” is
incorrect as the remedy available to the injured party is not limited to only action through
a state court. It could take place through the federal courts.

Submit
105. A broker who is hired by an owner to sell his property must reveal all significant and
material information to the principal. Which of the following would be considered material
information and must be revealed?

Explanation

The existence of a better offer that is imminent could very well be a material fact to the
seller. If would probably influence his decision on a present offer.

Submit
106. In regards to real estate brokerage, which of the following statements is correct:

Explanation

An exclusive agency listing, a seller agrees to pay a commission to the listing broker. It is
the listing broker’s responsibility to pay any other agent who sell the property.

Submit
107. An apartment owner was figuring his net income for income tax purposes. He took the
gross income and deducted certain expenses. Of the ones listed below, which could he not
deduct:

Explanation

A fence would be a capital improvement. The cost of it should be added to the cost basis
of the property and depreciated.

Submit
108. Of the following, the method which allows the most depreciation to be taken during the first
year would be:

Explanation

The 200% declining balance method of depreciation allows the most depreciation for the
first year. The sum-of the-years digits method allows the most depreciation in the earlier
years.

Submit
109. As a part of the purchase price, the seller of a parcel of land accepted a purchase money
first trust deed which contained a subordinate clause. This clause would:

Explanation

A loan and a trust deed that contains a subordination clause supercedes the rule “the first
to record is the first in right” - a subordination clause in a note and trust deed is evidence
that the lender agrees that a future obtained trust deed may be prior to this loan even though the future loan is recorded later. Often times builders use this clause in a trust
deed and note used to purchase raw land from the owner. They offer the owner the full
price contingent upon him carrying back financing for the land. The trust deed that he is
to receive from the builder must contain a subordination clause in which the owner of the
land agrees to be junior in priority to a future recorded construction loan.

Submit
110. Of the following factors, which is the one that would not contribute to obsolescence?

Explanation

Wear and tear from use in physical deterioration. Out-of-date equipment is functional
obsolescence. Change of locational demand and misplacement of improvement are both
economic obsolescence.

Submit
111. In an escrow, prepaid rents are normally:

Explanation

The vendee is the buyer. The buyer normally receives the prepaid rents.

Submit
112. An owner of a 5 unit apartment building that is located within the city limits intends to
covert the building into 5 condominium units and offer them for sale to the public. Under these
circumstances, the developer:

Explanation

Any type of subdivision located within the city limits is exempt under the Subdivided
Lands Act but a condominium conversion of 5 units or more is covered under the Map
Act and must be filed with the local authorities.

Submit
113. Other than non-dischargeable debts of a bankrupt debtor are cut off (discharged) as of the
date of:

Explanation

Debts are cut off (discharged) the date bankruptcy court issues a discharge.

Submit
114. As a condition for making a home loan, a bank charged the seller 4 points on the loan
amount. The bank immediately sold the loan to an insurance company at a discount of 3 ½
points and received $34,790. The original amount of the loan was most nearly:

Explanation

100% - 3.5% = 96.5%
$34,790 divided by 965 = $36,051.81

Submit
115. In the event the parties to a Bulk Sale do not comply with the provisions of the Bulk Sales
Law as outlined in the Uniform Commercial code, the party that would probably be injured the
most would be the:

Explanation

When the parties to a Bulk Sale do not comply with the Bulk Sales Law, any outstanding
creditor may step in and invalidate the sale and take the goods and have them sold to
satisfy the debt. The only recourse the buyer has it to chase down the seller who has
probably left the country.

Submit
116. A property was purchased for $450,000. The land was value at $53,000. If the
improvements had a remaining economic life of 40 years, what would be the value of the
properties after 16 years?

Explanation

$450,000 - $53,000 = $397,000
$397,000 divided by 40 = $9,925
$9,925 x 16 = $158,800
$450,000 - $158,000 = $291,200

Submit
117. Regulation Z of the Federal Trust-in-Lending Law would apply to real estate loans made for all of the following except:

Explanation

Under the Federal Truth-in-Lending Law (Regulation Z), business loans are exempt.

Submit
118. An employee of a corporate licensed as a real estate broker that is working as a member of
the corporate’s sales staff:

Explanation

All sales staff members employed by a licensed real estate corporation must have some
form of a license, either a salesperson or a broker.

Submit
119. If an advertisement is placed in a newspaper advertising a home for sale and only the
annual percentage rate is stated:

Explanation

Stating the ARP is sufficient disclosure for the ad. The disclosure statement issued at or
before closing would include a breakdown of the costs of credit, but not the ad.

Submit
120. An advertisement for the sale of real property placed by a real estate broker is prima
facie evidence of fraudulent and misleading information when:

Explanation

Prima facie means “on its face without further evidence”. Real Estate Law specifically
states that no place an advertisement concerning a note with an effective yield that does
not also state the rate on the face of the note is prima facie evidence of fraud.

Submit
121. The number of townships in a ranch that is 24 miles square is:

Explanation

A 24 mile square area would be 24 miles by 24 miles (24 x 24 = 576). Each township is
6 miles by 6 miles (6 x 6 = 36). Take 576 divided by 36 = 16.

Submit
122. A lender of money on real property should be relatively certain that his mortgage is an
enforceable lien. He can best accomplish this by:

Explanation

The title policy would guarantee to the lender that there were no prior liens on the
property. If any did arise at a later date, the title company would protect the lender at that
time.

Submit
123. Broker Able negotiates a $10,000 loan for property owner Baker, with funds provided by a
private investor and the loan secured by a second deed of trust on Baker’s home. The
maximum interest rate that can be legally charged on this loan is:

Explanation

The loan being negotiated by Broker Able for property owner Baker is secured by a second deed of trust on Baker's home and funded by a private investor. In this scenario, there is no limit on the maximum interest rate that can be charged on the loan. This means that the interest rate can be set at any percentage, as there are no legal restrictions or limitations in place for this specific type of loan.

Submit
124. Which of the following items is usually considered to be a cost of home ownership?

Explanation

The interest that is lost on owner’s equity is usually identified as lock in equity. This
term applies to the fact that the owner cannot utilize the funds for other investment
purposes.

Submit
125. Insofar as a residential neighborhood is concerned, which of the following would offer
the least protection against blighting influences on future development:

Explanation

A partially built-up neighborhood would have a definite tendency for blighting, because
it was not completed and there would be a potential for vandalism.

Submit
126. All of the statements below are true, except:

Explanation

A reconveyance deed is given by a trustee to the borrower (trustor) after a loan has been
paid in full. The borrower records his deed of reconveyance to clear the loan lien from
the record.

Submit
127. A woman died and left 360,000 acres of land. 37% vent to her husband, 18%went to each
of 2 sons and one daughter. The rest went to her college. The college’s share of the property
was worth $37,000. The daughter’s share was worth:

Explanation

18% x 3 = 54% (children’s share)
54% + 37% (husband’s share) = 91%
100% - 91% = 9% (college’s share) Daughter’s share is twice the colleges share
$37,000 x 2 = $74,000

Submit
128. A rectangular lot contained 17,550 square feet. It measured 150 feet deep. A man wanted
to build a store and needed more land. He could buy one lot on each side of this lot. Each of
the side lots was the same size and the same shape. Tact was 150 feet deep. Each contained
6,000 square feet. If he purchased all three lots, what would be the front footage?

Explanation

17,550 divided by 150 = 117
6,000 divided by 150 = 40
117 + 40 + 40 = 197

Submit
129. A real estate broker is usually:

Explanation

The broker is usually the agent (fiduciary) of the seller and usually does not have a powerofattorney.

Submit
130. Which of the following, when authorized by the broker, could make a withdrawal from the
broker’s trust account:

Explanation

By law, anyone other than the broker, such as a clerical employee, must be bonded in
order to be able to withdraw funds from the trust account.

Submit
131. Which of the following items would not be included in a bill of sale transferring a retail
merchandising business:

Explanation

A bill of sale should include an inventory of the stock, the trade name and a list of the
fixtures and equipment. It would not include an assignment of the leasehold because
that is personal property that should be transferred separately.

Submit
132. The owner of a single family residence plans to sell and wants to obtain an FHA appraisal
to permit a sale with FHA financing. He should:

Explanation

The recommended process for the lender to contact FHA for a ‘conditional’ commitment;
that is; for advance assurance that an FHA loan will be made, establishing the loan value
for the house.

Submit
133. Jones purchased a home in January for a total cost of $37,000. He made no improvements
to the home, and he sold it in August for $40,000. He then leased an apartment for a three year
term. For federal income tax purposes, he has experienced a:

Explanation

A long term capital gain is realized on the profit in the sale of property held more than six
months. He could have deferred his tax, if this were a residence, by reinvesting the
money in a new residence within 24 months or in the construction of a residence within
24 months. If this were income property, he could have deferred his income tax by
exchanging rather than selling.

Submit
134. A licensed real estate broker received a signed listing from a prospective seller. During the
listing period the broker found a buyer who submitted an offer that was $1,000 less than the
listed price. The owner accepted the offer as submitted and the buyer was notified of the
acceptance. After escrow was opened, buyer and seller agreed to cancel the sale but the seller
refused to pay the broker a commission. Under the Statute of Limitations how long does the
broker have to sue for his commission:

Explanation

The Statute of Limitations allows four years during which action may be taken on any
contract, obligation or liability founded upon an instrument in writing. Since a deposit
receipt is a written agreement of this nature, action to enforce collection of commission
must be take within this time limit.

Submit
135. In the sale of a business opportunity, which of the following would contribute the least to
goodwill:

Explanation

Goodwill is defined as the expectation of continued public patronage. Of the choice
offered, adequate stock and modern fixture would contribute the least to that
expectation.

Submit
136. Able buys Blackacre from Baker, taking title to the property subject to the existing loan.
The person primarily responsible for the repayment of the loan would be:

Explanation

When a buyer takes title ‘subject to’ the loan, the seller retains the responsibility for the
repayment of the note. The buyer takes no responsibility for the note. The buyer can lose
a property by foreclosure because a property was bought encumbered with loan, but after the foreclosure, if there is a deficiency in the process, the buyer is not liable for that note
deficiency. Any suit would be against the seller for the deficiency judgment as the
buyer’s name does not appear on the note.

Submit
137. Mutual mortgage insurance would be included in the issuance of:

Explanation

FHA insures loans with mutual mortgage insurance; it is used by FHA to pay lenders any
loss, within the insurance limits resulting from foreclosure.

Submit
138. A real estate licensee advertising property for sale includes the credit terms available to
complete the sale. With respect to advertising these credit terms:

Explanation

A fact to know.

Submit
139. A lender would be exempt from the requirement of providing the borrower with a Federal
Right to Rescind Notice except:

Explanation

A negative question. Refinancing your personal residence is not an exemption and is
fully covered by a three day right of rescission.

Submit
140. Under the Truth-in-Lending Law, an agent is required to give the buyer the Federal Right
to Cancellation form when:

Explanation

According to the Truth-in-Lending Law, an agent is required to give the buyer the Federal Right to Cancellation form when residential security is given for a loan. This means that if a person uses their residential property as collateral for a loan, the agent must provide them with the cancellation form. This form gives the borrower the right to cancel the loan within a certain period of time after signing the agreement.

Submit
141. When a man purchases a business, he should be sure that a certificate of clearance or
clearance receipt has been issued by the:

Explanation

A certificate of clearance would be issued by the Board of Equalization to indicate that
all of the sales tax owed by the seller had been paid.

Submit
142. A real estate broker negotiates a $7,000 second trust deed secured by real property. The
loan was to be paid in full in five years. The most the broker could charge as a commission for
his services would be:

Explanation

Under Article 7, a junior loan under $20,000 and for a term of three years or longer
allows a maximum commission (lenders loan fee) of 15% of the face amount of the
loan amount.

Submit
143. If a buyer take the property subject to the existing loan, ‘subject to’ most nearly means:

Explanation

If a buyer takes the property "subject to" the existing loan, it means that the buyer will not be personally liable for the loan. This means that the buyer is not responsible for repaying the loan if the seller defaults on payments. The buyer simply takes over the loan and makes the payments, but their personal assets are not at risk if the loan is not repaid.

Submit
144. A man paid $31,689 for his property. Assuming that his cost of selling was 12%, what is
the amount that the property must appreciate without showing a loss:

Explanation

100% - 12% = 88%
$31,689 divided by 88% = $36,010.23
$36,010.23 - $31,689.00 = $4,321.23

Submit
145. Broker Baker arranged a $2,500 second trust deed loan for two years. The maximum
amount of cost and expenses, including Baker’s commission, excluding title and escrow
charges, is:

Explanation

$390 max. allowable closing costs because 5% of $2,500 ($125) is less than $390. All
loans (under Article 7) of less than $7,800 may be charged the maximum of $390 if 5%
of the loan amount is less than the $390 maximum. (Maximum commission is 10%).

Submit
146. Mr. O’Riley paid an owner $10 for an option containing this clause: “Option to be for 60
days from June 1, 1967. Upon exercise of option, holder is to purchase within 30 days
thereafter for all cash consideration.”
On July 10, Mr. O’Riley sold and assigned his option for $1,000. On July 28, the new holder
notified the owner that he would purchase on August 15. The owner claimed the option was
void. The option was:

Explanation

In as much as the terms of the option are for all cash consideration and no unsecured
promissory note is involved, it must be sold or assigned. Because the new holder
exercised the option within the 60 days period (before July 30) and purchase the
property with 30 days of the exercise date (before August 30) the option is valid.

Submit
147. An investor purchased a parcel of land for $30,500. After construction a building, his total
investment was $160,000. The building had an estimated economic life of 33 1/3 years. Using
the straight line method of depreciation, what was the remaining value of the property at the
end of 10 years?

Explanation

If the building had an economic life of 33 1/3 years, it would depreciate 3% per year. At
the end of 10 years, it would be depreciated 30%.
$160,000 - $30,500 = $129,500 (building value)
$129,500 x 30% = $38,850 (accrued depreciation)
$160,000 - $38,850 = $121,150

Submit
148. When a mortgage company advertises a graduated mortgage, under the Truth-in-Lending
Act, the advertisement must include the:

Explanation

The Truth-in-Lending Law requires an advertisement concerning a graduated payment
loan to distinctly illustrate the increases in monthly payment.

Submit
149. Mortgage loan broker Able arranged for a four year second trust deed loan of $4,000 for
his client. The maximum dollar amount of commission and other loan origination expenses,
excluding title expense, would be:

Explanation

A junior loan of less than $20,000 for a term of three years or longer allows a $600 (15%
x $4,000) commission (loan fee) to the lender. Maximum allowable closing costs in
addition to the loan fee to the borrower on a new loan of
$4,000 is $390.
$390 max. allowable closing costs
+ $600 max. allowable loan fee
= $990 total max. allowable costs on a new $4,000 2nd trust deed for 4 years

Submit
150. The type of legal action that would most likely be taken in the event of a default on a land
contract would be:

Explanation

If the original land contract had been recorded and the buyer has defaulted, there would be
a cloud on the title and some form of legal action would be required to clear the title. This
would not be a foreclosure but a quiet title action.

Submit
View My Results

Quiz Review Timeline (Updated): Mar 20, 2023 +

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

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 12, 2010
    Quiz Created by
    Wilesaustin
Cancel
  • All
    All (150)
  • Unanswered
    Unanswered ()
  • Answered
    Answered ()
A valid escrow requires which of the following:
Lender’s use the term “debt-income ratio” to refer to a:
The Real Estate Commissioner would be prevented from proceeding with a...
You sell a note with a face value of $12,000 for $10,000. You are:
To minimize risk, a lender looks at:
A minority purchaser enters your office and states they are looking...
Which of the following phrases will best describe the nature of a...
When a broker misrepresents his principal’s property to a buyer, he...
A buyer defaults on a loan, therefore the lender would be able to...
A salesman receives a deposit together with a written offer to...
An “able buyer” means one:
If the loan-to-value ratio is low:
Broker Young, as an agent, showed a property to James. James signed a...
The mortgage loan which permits borrowing additional funds at a later...
According to the Truth-in-Lending Act, consumers must be informed of...
A second offer received on a property prior to the seller’s decision...
A buyer of a residence, prior to the close of escrow, asks the broker...
Comparing an installment note to a straight note, the straight note...
A primary justification for zoning ordinances is to:
In portfolio risk management, a lender considers:
An attorney drew up a contract between a buyer and a seller for the...
Which of the following is not a necessary element in the formation of...
A lender possessing a chattel mortgage may:
Certain charges are prohibited by the Real Estate Settlement...
Property management, appraisal, financing, and development are all...
Which of the following factors is most likely to influence demand for...
In addition to certain municipal or county regulations which apply to...
The cost approach used on a residence built in 1912 would require:
A licensed real estate broker working under a typical exclusive...
After acquired title is conveyed in any trust deed for the benefit of...
During Broker Shaw’s preparation of the Exclusive Authorization and...
Concerning business opportunities:
A loan created with more than one borrower is usually added to the...
A loan for which interest-only payments are made is:
A third party who takes a promissory note that is complete and regular...
In general, when the supply of a certain commodity increases,
A new well and pump were installed on a parcel of land. For property...
A clause in a trust deed providing that the rights of the beneficiary...
When a legal description uses only sections, townships and ranges, the...
Which of the following would normally install conduit?
Where a broker show a client’s property to a prospective buyer that...
An offer to purchase real property was signed by a prospective buyer...
Which of the following loans is exempt from the Truth-in-Lending Law?
If a man has a freehold estate, which of the following would result in...
A major manufacturer of automobiles announces that it will relocate...
Generally, the most important determinant of a property’s value is:
Many real estate contracts are in writing on forms. Parts of these...
Which of the following is the classic definition of the boundaries of...
Able sold six unencumbered properties to Baker. Part of the purchase...
What document is issued when a judgment for sale of the property is...
Which of the following best describes a ‘complete’ escrow?
You pay the most points under which type of financing:
Mr. and Mrs. Johnson who had been shopping for a new home found one...
The seller completed Paragraph 2 of the Exclusive Authorization and...
Capitalization is an appraisal process used to:
Fish owns a lot. He also owns a right of way easement over the...
A loan that is secured on easy terms and with a low down payment...
The right to foreclose a trust deed, under a trustee’s power of...
Which of the following is a legal term used to describe the entire...
A buyer defaults in making payments on a loan, therefore the...
A licensee who has several years of experience in the industry decided...
The lender’s first line of defense in making a loan is:
Broker Stiles took a listing from a seller using the standard listing...
What are impounds usually called?
Sellers are usually reluctant to cancel an existing transferable fire...
The words Broker and REALTOR® are
The Federal Right to Cancellation from must be given the borrower by...
A contract which, according to the Statute of Frauds, must be in...
With an open end mortgage, the:
A subordination clause in a trust deed may:
Able submitted an offer to purchase Blackacre. During the escrow...
A lessee’s interest is:
The one unity in a joint tenancy holding that is also present in...
To alienate title to real property, one would:
A REALTOR® is best described as an individual who is
The north ½ of the north ½ of the east ½ of the northwest ¼ of...
Option to renew a lease is a:
Which of the following items could not be used by the owner of a...
A subdivider and developer purchased considerable acreage and now...
In appraisal practice, all of the following are accepted methods of...
Real property would include:
A release clause:
According to the Truth-in-Lending Law, to advertise the following is...
Two people entered into a land contract for the purchase of a home and...
An offer by one of the parties to a real estate transaction to carry...
An alienation clause provides that:
Prior to the sale of a subdivision, a subdivider must show proof to...
To use the capitalization approach to appraising you need the:
Mortgage yield is best described as:
The best definition of a straight note is:
Which is true concerning an option:
In which of the following ways may an agency relationship not be...
RESPA requires delivery of the uniform settlement statement not later...
Daniels purchased 60 acres of land near a city. He intended to...
Mr. Smith borrowed money on a term note at an interest rate of 7.2%....
A person and his property that is encumbered by a first deed of trust...
State and county law require documentary transfer tax be paid at the...
Real property includes the land, those things attached to the land,...
How many acres are in the west ½ of the south ½ of the south ½ of...
A prospective client calls you and asks you to take a listing on his...
Which of the following factors primarily affects supply in the real...
After the due date Able makes a payment on a mortgage loan. By...
A homeowner secures a $4,800 home improvement loan to install a sauna...
Should a person be discriminated against, what would best describe the...
A broker who is hired by an owner to sell his property must reveal all...
In regards to real estate brokerage, which of the following statements...
An apartment owner was figuring his net income for income tax...
Of the following, the method which allows the most depreciation to be...
As a part of the purchase price, the seller of a parcel of land...
Of the following factors, which is the one that would not contribute...
In an escrow, prepaid rents are normally:
An owner of a 5 unit apartment building that is located within the...
Other than non-dischargeable debts of a bankrupt debtor are cut off...
As a condition for making a home loan, a bank charged the seller 4...
In the event the parties to a Bulk Sale do not comply with the...
A property was purchased for $450,000. The land was value at $53,000....
Regulation Z of the Federal Trust-in-Lending Law would apply to real...
An employee of a corporate licensed as a real estate broker that is...
If an advertisement is placed in a newspaper advertising a home for...
An advertisement for the sale of real property placed by a real estate...
The number of townships in a ranch that is 24 miles square is:
A lender of money on real property should be relatively certain that...
Broker Able negotiates a $10,000 loan for property owner Baker, with...
Which of the following items is usually considered to be a cost of...
Insofar as a residential neighborhood is concerned, which of the...
All of the statements below are true, except:
A woman died and left 360,000 acres of land. 37% vent to her husband,...
A rectangular lot contained 17,550 square feet. It measured 150 feet...
A real estate broker is usually:
Which of the following, when authorized by the broker, could make a...
Which of the following items would not be included in a bill of sale...
The owner of a single family residence plans to sell and wants to...
Jones purchased a home in January for a total cost of $37,000. He made...
A licensed real estate broker received a signed listing from a...
In the sale of a business opportunity, which of the following would...
Able buys Blackacre from Baker, taking title to the property subject...
Mutual mortgage insurance would be included in the issuance of:
A real estate licensee advertising property for sale includes the...
A lender would be exempt from the requirement of providing the...
Under the Truth-in-Lending Law, an agent is required to give the buyer...
When a man purchases a business, he should be sure that a certificate...
A real estate broker negotiates a $7,000 second trust deed secured by...
If a buyer take the property subject to the existing loan, ‘subject...
A man paid $31,689 for his property. Assuming that his cost of selling...
Broker Baker arranged a $2,500 second trust deed loan for two years....
Mr. O’Riley paid an owner $10 for an option containing this clause:...
An investor purchased a parcel of land for $30,500. After construction...
When a mortgage company advertises a graduated mortgage, under the...
Mortgage loan broker Able arranged for a four year second trust deed...
The type of legal action that would most likely be taken in the event...
Alert!

Advertisement