Real estate

Which of the following is a lien on real estate

A real estate professional receives a check for earnest money from a buyer and deposits the money in the real estate professional's personal interest-bearing checking account over the weekend. This action exposes the real estate professional to a charge of

A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years and a final payment of $24,095. This is what type of loan?

A sales contract was signed by a minor. Which term describes this contract?

If a borrower computed the interest charged for the previous month on a $260,000 loan balance as $1,300, what is the borrower's interest rate to the nearest half percent?

A real estate professional signs a contract with a buyer. Under the contract, the real estate professional agrees to help the buyer find a suitable property and to represent the buyer in negotiations with the seller. The buyer may not sign an agreement with any other real estate professional. What kind of agreement has this real estate professional signed?

A grantor conveys property by delivering a deed. The deed contains five covenants. This is MOST likely a

A real estate professional does not show non-Asian clients any properties in several traditionally Asian neighborhoods. The real estate professional bases this practice on the need to preserve the valuable cultural integrity of Asian immigrant communities. Which statement is TRUE regarding the real estate professional's policy?

A woman grants a life estate to her son-in-law and stipulates that, upon his death, the title to the property will pass to her grandson. The grandson's interest in is known as a(n)

A primary benefit of property held in joint tenancy is

A licensed real estate sales associate has a written contract with the employing broker that specifies that the sales associate will not be treated as an employee for federal tax purposes. The sales associate's entire income is from sales commission rather than an hourly wage. Based on these facts, the sales associate will be treated by the IRS as

The states in which the owner gives up legal title of mortgaged real estate are known as

The form of tenancy that will expire on a specific date is a

A large home that lacks sufficient indoor plumbing suffers from which condition?

A developer built a structure that has six stories. Several years later, an ordinance was passed in that area banning any building six stories or higher. This building is a

Assuming that the listing agent and the selling agent in a transaction split their commission equally, what was the sales price of the property if the commission rate was 5.5% and the listing agent received $12,584

A real estate broker specializes in helping both buyers and sellers with the necessary paperwork involved in transferring property. Although not an agent of either party, the broker may not disclose either party's confidential information to the other. The broker is BEST described as a(n)

Three women owned a house as joint tenants. In the year 2009, one died. Last month, another died. Based on these facts, which of the following correct describes the remaining woman's ownership interest in the house?

The listing and selling brokers agree to split a 7% commission 50/50 on a $295,900 land sale. The listing broker gives the listing sales associate 50% of the listing broker's share, and the selling broker gives the selling sales associate 65% of that share. How much does the selling sales associate earn from the sale after deducting expenses of $1,300? Round your answer to the nearest cent.

Police powers include all of the following EXCEPT

A seller wants to net $165,000 from the sale of a house after paying the broker's fee of 6% and other closing costs of $2,635. The seller's gross sales price will be

Three acres equals how many square feet?

A buyer is purchasing a condominium unit in a subdivision and obtains financing from a local bank. In this situation, which term BEST describes this buyer?

The correct value of a property is $140,000. The property is assessed at 40% of it's current value for real estate tax purposes, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is $4 per $100 of assessed valuation, what is the amount of tax due on the property?

A building was sold for $260,000, with the purchaser putting 10% down and obtaining a loan for the balance. The lending institution charged at 1% loan origination fee. What was the total cash used for the purchase?

A parcel of vacant land has an assessed valuation of $274,550. If the assessment is 85% of market value, what is the market value?

Which of the following BEST describes a capitalization rate?

A parcel of land described as "the NW1/4 and the SW1/4 of Section 6, T4R, R8W of the Third Principal Meridian" was sold for $875 per acre. The listing agent will receive a 5% commission on the total sales price. How much will the agent receive?

If a house was sold for $360,000 and the buyer obtained a mortgage loan for $288,000, how much money would the buyer pay in discount points if the lender charged two points?

The commission rate is 7% on a sale of $250,000. What is the dollar amount of the commission?

A prospective buyer signs an offer to purchase a residential property. All the following circumstances would automatically terminate the offer EXCEPT

A buyer purchased a home under a land contract. Until the contract is paid in full, or the buyer meets statutory requirements, the buyer

A buyer and a seller sign a contract for the sale of real property. A few days later, they decide to change many of the terms of the contract, while retaining the basic intent to buy and sell. The process by which the new contract replaces the old one is called

Using the services of a mortgage broker, a buyer borrowed $25,000 from a private lender. After the loan costs were deducted, the buyer received $24,255. What is the face amount of the note?

Whose signature is necessary for a signed offer to purchase real estate to become a contract?

A borrower has just made the final payment on a mortgage loan. Regardless of this fact, the records will still show a lien on the mortgaged property until which event occurs?

If the annual net income from a commercial property is $75,000 and the capitalization rate is 8%, what is the property worth if the income approach is used?

A real estate professional enters into a listing agreement with a seller in which the seller will receive $120,000 from the sale of a vacant lot and the real estate professional will receive any sale proceeds exceeding that amount. This is what type of listing?

Under a cooperative form of ownership, an owner

A known defect or a cloud on the title to property may be cured by

A seller signed an exclusive right-to-sell agreement with a real estate professional. If the seller finds a suitable buyer with no assistance, the real estate professional is entitled to

Under the terms of a net lease, a commercial tenant would usually be directly responsible for paying all the following property expenses EXCEPT

The Civil Rights Act of 1866 prohibits discrimination based on

What would it cost to put new carpeting in a room measuring 45 feet by 20 feet if the carpet cost $16.95 per square yard, plus a $250 installation charge?

What is the difference between a general lien and a specific lien?

In an option to purchase real estate, which statement is TRUE of the optionee?

A village board has decided that a parking lot near the central business district would enhance the beauty, safety, and vitality of the community by keeping cars from parking on the busiest streets. Unfortunately, a house is located on part of the land best suited for the new parking lot. Based on these facts, which statement is TRUE?

How many acres are there in the N1/2 of the SW1/4 and the NE1/4 of the SE1/4 of a section?

A home is the smallest in a neighborhood of large, expensive houses. The effect of the other houses on the value of the small home is known as

A lien that arises as a result of a judgement, estate or inheritance taxes, a dependent's debts, or federal taxes is what type of lien?

All of the following will terminate an offer to purchase real estate EXCEPT

Two men are joint tenants. One of the men sells his interest to another person. What is the remaining man's relationship to the new tenant regarding the property?

Two friends enter into a sex-month oral lease. If one friend defaults, the other may

On Monday, a prospective buyer offers to purchase a vacant lot for $25,000. On Tuesday, the owner counteroffers to sell the lot for $29,000. On Friday, the owner withdraws the counteroffer and accepts the buyer's original offer of $25,000. Under the circumstances, which statement is TRUE?

A man's neighbors use his driveway to reach their garage, which is on their property. The man's attorney explains that the neighbors have the right to use the driveway. The man's property is the

If the quarterly interest at 7.5% is $562.50, what is the principal amount of the loan?

A deed conveys ownership to the grantee "so long as the existing building is not torn down." What type of estate does this deed create?

If the mortgage loan is 80% of the appraised value of a house and the interest rate of 6% amounts to $460 for the first month, what is the appraised value of the house?

Local zoning ordinances may regulate all of the following EXCEPT

A real estate professional took a listing and later discovered that the client had been declared incompetent by a court. What is the current status of the listing?

After a borrower's default on home mortgage loan payments, the lender obtained a court order to foreclose on the property. At the foreclosure sale, the property sold for $164,000; the unpaid balance on the loan at the time of the foreclosure was $178,000. If state law permits, what must the lender do to recover the $14,000 that the borrower still owes?

Which activity is forbidden by the federal Fair Housing Act?

A buyer purchases a #137,000 property, depositing $3,000 as earnest money. The buyer obtains a 75% loan-to-value (LTV) loan with no additional items to be prorated and no closing costs to the buyer. How much more cash will the buyer need at the settlement?

A real estate professional arrives to present a purchase offer to a seller who is seriously ill and finds the seller's son and daughter-in-law also present. The son and daughter-in-law angrily urge the seller to accept the offer, even though it is much less than the asking price for the property. If the seller accepts the offer, she may not be bound by it because the

A property is sold. The deed of conveyance contained only the following guarantee: "This property was not encumbered during the time the seller owned it except as noted in this deed." What type of deed makes such a covenant?

An unmarried couple own a parcel of real estate. Each owns an undivided interest, with one owning one-third and the other owning two-thirds. The form of ownership under which the couple own their property is

A buyer agrees to purchase a house for $184,500. The buyer pays $2,000 as earnest money and obtains a new mortgage loan for $167,600. The purchase contract provides for a March 15 settlement. The buyer and the seller prorate the current year's real estate taxes of $1,880.96, which have been prepaid. The buyer has additional closing costs of $1,250, and the sellers have other closing costs of $850. How much cast must the buyer bring to the settlement?

A real estate professional listed a house for $247,900. A member of a racial minority group saw the house and was interested in it. When the prospective buyer asked the real estate professional the price of the house, the real estate professional said that it was listed at $253,000 and that the seller was very firm on the price. Under the federal Fair Housing Act of 1968, such a statement is

A woman placed a property in a trust. When she died, her will directed the trustee to sell the property and distribute the proceeds of the sale to her heirs. The trustee sold the property in accordance with the will. What type of deed was delivered at settlement?

An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is an elegant old mansion that is now used as a restaurant. Which approach to value should the appraiser probably give the greatest weight when making this appraisal?

A borrower applies for a mortgage, and the loan officer suggests that the borrower considers a term mortgage loan. Which statement BEST explains what the loan officer means?

A condominium community has a swimming pool, sauna, and tennis courts. These facilities are MOST likely owned by the

At closing for a typical real estate transaction, the buyer's earnest money deposit is a

At closing for a typical real estate transaction, property tax not yet due is a

Real property can become personal property by the process known as

A man and a woman are next-door neighbors. The man gives the woman permission to park a camper in his yard for a few weeks. He does not charge her rent for the use of the yard. The man has given the woman a(n)

What is the cost of constructing a fence 6 feet, 6 inches, high around a lot measuring 90 feet by 175 feet, if the cost of the fence is $1.25 per linear foot and the cost of materials is $0.825 per square foot of fence? Round your answer to the nearest cent.

A seller signs a listing agreement with a real estate professional. A second real estate professional form a different firm obtains a buyer for the property, and the first real estate professional does not receive a commission. The first real estate professional does not sue the seller, even though the seller compensated the second real estate professional. The listing agreement between the seller and the first real estate professional was probably which type?

Antitrust laws do NOT prohibit real estate

A tenant leased an apartment from a property owner. Because the owner failed to perform routine maintenance, the apartment building's central heating plant broke down in the fall. The owner neglected to have the heating system repaired, and the tenant had no heat for the first six weeks of winter. The tenant reported this problem repeatedly to the owner. Although eight months remained on his lease, the tenant moved out of the apartment and refused to pay any rent. If the owner sues to recover the outstanding rent, what would be the tenant's BEST defense?

A tenant's landlord plans to sell the building in which the tenant lives to the state so that a freeway can be built. The tenant's lease has expired, but the landlord permits the tenant to stay in the apartment until the building is torn down. The tenant continues to pay rent as prescribed in the lease. What kind of tenancy does this tenant have?

The owner of a house wants to fence the yard for the family pet. When the fence is erected, the fencing materials become real estate through

A seller is interested in selling a house as quickly as possible and believe that the best way to do this is to have several real estate professionals compete against each other for the commission. The listing agreements with four different real estate professionals specifically promise that if one of them finds a buyer for the property, the seller will be obligated to pay a commission to that real estate professional only. What type of agreement has the seller entered into?

In some states, by paying the debt after a foreclosure sale, the delinquent borrower has the right to regain the property under which of the following?

A country music singer who owns a cattle ranch enters into a sale-and-leaseback agreement with a local dentist. Which statement is TRUE of this arrangement?

A real estate professional is employed by a buyer. When real estate professional finds a property that the buyer might by interested in buying, she is careful to find out as much as possible about the property's owners and why their property is on the market. The real estate professional's efforts to keep the buyer informed of all facts that could affect a transaction is the duty of

A parcel of vacant land 80 feet wide and 200 feet deep was sold for $500 per front foot. How much money would a real estate professional receive as a 60% share of a 10% commission on a sale?

Which situation does NOT violate the federal Fair Housing Act?

If a storage tank that measures 12 feet by 9 feet by 8 feet is designed to store gas that costs $1.82 per cubic foot, what does it cost to fill the tank to one-half of it's capacity? Round your answer to the nearest dollar.

A buyer bought a house for $225,000. The house, which had originally sold for $148,250, appraised for $210,500. Based on these facts, if the buyer applies for an 80% mortgage, what will by the amount of the loan?

A purchaser offers to buy a seller's property by signing a purchase contract. The seller accepts the offer. What kind of title interest does the buyer have in the property at this point?

Which federal law requires that finance charges be stated as an annual percentage rate?

A seller signed a 90-day listing agreement with a real estate professional. Two weeks later, the seller was killed in an accident. What is the present status of the listing?

A woman conveys the ownership of an office building to a nursing home. The nursing home agrees that the rental income produced by the building will pay for the expenses of caring for the woman's parents. When both her parents have died, ownership of the office building will revert to the woman. The estate held by the nursing home is a

A buyer signs a buyer representation agreement under which the real estate professional will help this client find a three bedroom house in the $185,000 to $200,000 price range. A seller comes into the real estate professional's office and signs a listing agreement to sell a two bedroom condominium for $170,000.Based on these facts, which statement is TRUE?

In a township, which statement is TRUE?

A real estate professional representing a seller is asked by the client to make sure that the deed to the buyer does not reveal the actual sales price. In this case, the real estate professional

A real estate professional obtained a listing agreement to act as the agent in the sale of a house. An unrepresented buyer has been found for the property, and all agreements have been signed.As agent of the seller, the real estate professional is responsible for which activity?

A broker's employment agreement with a sales associate provides a commission share of 65% to the sales associate. What is the sales associate's compensation if the sales price of a property is $895,000, the broker is entitles to a 6.5% commission, and there is no cooperating broker?

Which step is among those an appraiser would use in preparing a real property appraisal using the cost approach?

When a mortgage lender provides the buyer with statements of all fees and charges the seller will incur, the lender is complying with requirements that originated under which federal law?

The landlord of an apartment building neglected to repair the building's plumbing system. As a result, the apartments did not receive water. If a tenant's unit becomes uninhabitable, what is the MOST likely result?

A man conveys a life estate to his son. Under the terms of the man's conveyance, the property will pass to the man's nephew on his son's death. Which interest in the property BEST describes that of the nephew's during the son's lifetime?

At closing, prorations for unpaid real estate taxes are shown as a

What type of lease establishes a rental payment and requires the lessor to pay for the taxes, insurance, and maintenance on the property?

A conventional mortgage loan closed on July 1 for $165,000 at 3.75% interest amortized over 25 years at $857.06 per month. Using a 360-day year and interest paid in arrears, what would the principal amount be after the monthly payment was made August 1?

In the preceding question, what would the interest portion of the payment be?

A seller lists her home with a real estate professional for $220,000 but tells the real estate professional, who is acting as the seller's agent. "I've got to sell quickly because of a job transfer. If necessary, I can accept a price as low as $175,000." The real estate professional tells a prospective buyer to offer $180,000 "because the seller is desperate to sell." The seller accepts the buyer's offer. In this situation, which statement is TRUE?

Which of the following BEST describes the capitalization rate under the income approach to appraising real estate?

At closing, the cost of the lender's title insurance policy required for a new loan is usually shown as which of the following?

An FHA-insured loan in the amount of $157,500 at 4.5% for 30 years closed on July 17. The first monthly payment is due on September 1. Using a 360-day year and assuming that interest is being paid for the day of closing, what was the amount of the interest payment the buyer had to make at the settlement?

If a home that cost $342,500 three years ago is now valued at 127% of it's original cost, what is its current market value?

A buyer makes an offer on a property and the seller accepts. Three weeks later, the buyer announces that "the deal's off" and refuses to go through with the sale. If the seller is entitles to keep the buyer's earnest money deposit, there MOST likely is what kind of clause in the sales contract?

A search of the public record regarding title to a property is MOST likely to provide information about which item?

A rectangular lot is worth $193,600. This value is the equivalent of $4.40 per square foot. If one lot dimension is 200 feet, what is the other dimension?

A real estate professional listed an agricultural property at an 8% commission rate. After the sale of the property and the settlement had taken place, the seller discovered that the real estate professional had been listing other properties at a 6% commission rate. Based on this information, which statement is TRUE?

A renter has six months remaining on her apartment lease. The monthly rent is $875. The renter moves out of the apartment for 4 months and a friend moves in. The friend pays the renter a monthly rental of $700, and the renter continues paying the full rental amount under her lease to the landlord. This is an example of

One real estate professional asked another, "Will I have to prove that I was the procuring cause in order to collect a commission if my seller sells the property without any help?" The other real estate professional answered, "No, not if you have an

The capitalization rate on a property reflects (among other things) which factor?

An investment property now worth $180,000 was purchased seven years ago for $142,000. At the time of the purchase, the land was valued at $18,000. Assuming a 27.5 year half life for straight line depreciation purposes, what is the present book value of the property?

After a buyer purchased a property from a seller, they both decided to rescind the recorded transfer. To do this, what must happen?

A farmer owns the W1/2 of the NW1/4 of the NW1/4 of a section. The adjoining property can be purchased for $300 per acre. Owning all of the NW1/4 of the section would cost the farmer

A real estate professional received a deposit, along with a written offer from a buyer. The offer stated: "The offeror will leave this offer open for the seller's acceptance for a period of 10 days." On the fifth day, and before acceptance by the seller, the offeror notified the real estate professional that the offer was withdrawn and demanded the return of the deposit. Which statement is TRUE in this situation?

A building's owner pays a property manager an 8.5% commission based on the unit's annualized rent for each new tenant. Last year, the manager signed five new tenants--three at $795 per mont, one at $1,200 per month, and one at $900 per month. What was the total amount of the property manager's new-tenant commissions for that year?

The monthly rent on a warehouse is $1 per cubic yard. Assuming the warehouse is 36 feet by 200 feet by 12 feet high, what is the annual rent?

If a veteran wishes to refinance a home by changing to a VA-guaranteed loan and the lender insists on 3.5 discount points, which option is available to the veteran?

A woman owned property that she conveyed to a man "so long as no real estate broker or salesperson ever sets foot on the property." If a broker or salesperson visits the property, ownership will revert to the woman. Based on these two conveyances, which statement is TRUE?

A real estate transaction has a closing date of November 15. The seller, who is responsible for costs up to and including the date of settlement, has already paid the property taxes of $11,160 for the calendar year. On the closing statement, the buyer will be

After a storeowner's spouse died, he could no longer maintain the store. A woman who wished to open a store agreed to move into the entire space and pay for the remaining seven years on the lease. The landlord agreed to the arrangement. This is known as a lease

A purchaser buys a house for $234,500 by making a $25,000 cash down payment and taking out a $209,500 mortgage for 30 years. The lot value is $80,000. If the purchaser wants to depreciate the property over a period of 27.5 years, what will be the annual depreciation amount using the straight-line method? Round your answer to the nearest cent.

A property manager leased a store for three years. The first year, the store's rent was $1,000 per month, and the rent was to increase 10% per year thereafter. The manager received a 7% commission for the first year, 5% for the second year, and 3% for the balance of the lease. What was the total commission earned by the property manager?

Against a recorded deed from the owner of record, the party with the weakest position is a

A married couple files their income taxes jointly. Last year they sold their home for $340,000. Seven years ago, when they were first married, they bought the house for $250,000 and have lived in it ever since. Based on these facts, which statement is TRUE?

A squatter moved into an abandoned home and lived there for some years. Ultimately, the squatter was granted title to the property by a court. Which element is NOT basic to acquiring title in this manner?

Maria, Frank, and Judy are joint tenants. Judy sells her interest to Laura, and then Frank dies. As a result, which statement is TRUE?

At closing, the selling price is

The state wants to acquire a strip of farmland to build a highway. Does the state have the right to acquire this land for public use?

A man died, and his estate was distributed according to his will as follows: 54% to his spouse, 18% to his children, 16% to his grandchildren and the remainder to his college. The college received $79,000. How much did the man's children receive? Round your answer to the nearest dollar.

Which of the following is an example of external obsolescence?

Which phrase, when placed in a print advertisement, would MOST nearly comply with the requirements of the Truth in Lending Act (Regulation Z)?

Which statement is FALSE regarding a capitalization rate?

The Equal Credit Opportunity Act (ECOA) makes it illegal for lenders to refuse credit to or otherwise discriminate against which applicant?

When a man died, a deed was found in his desk drawer. Although the deed had never been recorded, it was signed, dated, and acknowledged. The deed gave the man's house to a local charity. The will, however, provided as follows: "I leave all of the real and personal property that I own to my beloved niece." In this situation, the house MOST likely will go to the

If a borrower takes out a $90,000 loan at 7.5% interest to be repaid at the end of 15 years with interest paid annually, what is the total interest that the borrower will pay over the life of the loan?

After an offer is accepted, the seller finds that the real estate professional was the undisclosed agent for the buyer, as well as the agent for the seller. The seller may

To net the owner $90,000 after a 6% commission is paid, what would the list price have to be? Round your answer to the nearest dollar.

Which circumstance would MOST likely be legal under the provisions of the federal Fair Housing Act?

It is discovered after a sale of a parcel of land that the land parcel is 10% smaller than the seller represented it to be. The real estate professional who passed this information on to the buyer is

An easement terminates

Which activity is NOT a violation of the Real Estate Settlement Procedures Act (RESPA)?

The rescission provisions of the Truth in Lending Act (Regulation Z) apply to which transaction?

A property has a net income of $30,000. An appraiser decided to use a 12% capitalization rate rather than a 10% rate on this property. The use of the higher rate results in

The section in a purchase contract that would provide for the buyer to forfeit any earnest money if the buyer fails to complete the purchase is known as a provision for

In one commercial building, a tenant intends to start a small health food shop. An identical, adjacent building houses a showroom leased to a major national retailing chain. Both tenants have long-term leases with identical rents. If the appraiser uses a capitalization rate for the store leased to the national retailing chain that is lower than the rate for the other building, which statement is TRUE?

An insurance company agreed to provide a developer with financing for a shopping center at 7% interest plus an equity position. What type of loan is this?

A $100,000 loan at 6% could be amortized with monthly payments of $644 on a 15-year basis or payments of $600 on a 30-year basis. The 30-year loan results in total payments of what percentage of the 15-year total payments? Round your answer to the nearest whole percentage.

According to an appraisal prepared for a loan approval, a property is worth $425,000. The previous homeowner bought the property for $290,000 and added $50,000 in improvements, for a total of $340,000. The property sold in foreclosure for $325,000. Which amount represents the property's market price?

What is the amount of tax payable if a property's assessed value is $185,000 and the tax rate is 40 mills in a community in which an equalization factor of 110% is used?

At closing, how will a proration of prepaid water, glass, and electric charges be reflected?

An apartment manager decides not to purchase flood insurance. Instead, the manager installs raised platforms in the basement storage areas and has the furnace placed on either-inch legs. This form of risk management is known as