Final Study Quiz

A tenant rents property and buys room size rugs. The owner then mortgages the property after the tenant lays the rugs down. This means:

A seller, Jane Jones, had prize rose bushes in her yard. They were not mentioned specifically in hte sales contract. Two days before closing, she removed them. Was this a lawful act?

The right of a land owner to have a reasonable use of water from an adjoining stream is known as:

Deeds, contracts and other documetns dealing with real estate describe only the land because:

The owner of land may also possess air rights and subsurface rights. These rights are:

A land owner had a small lake totally enclosed within the land. The owner told a neighbor to feel free to fish in the lake anytime he wished. The neighbor has:

Timber and Stove Construction Company has an easement to stack lumber on another's land. This results in:

An easement that is acquired by constant, hostile use is called an easement by:

From the standpoint of the dominant estate, an easment is:

Telephone, gas and electric lines placed on privately owned land are examples of:

Which of the following are encroachments?

An unpaid workman wishes to file a mechanics lien for materials, labor and travel expenses. The workman can file for:

Property owner Ann was upset over neighboring property owner Bee's decision to build a 12-story apartment house. Since zoning permitted, there was little Ann could do at the time. Shortly after construction began, property owner Ann found that the foundation of the building was two feet over the property line. In order to punish Bee, Ann waited until 11 stories had been completed before asserting a claim and demanded the building be torn down. The probably result will be:

Which of the following liens has priority over the others?

When you record a deed, it gives:

Private agreements that govern the use of land are known as:

A lien is best described as:

Blaze fell from the front porch of Ramsey's house. Blaze sued for damages because of injuries suffered from the fall and won a judgement. The resulting lien is:

The word "encumbrance" is best described as:

Subdivision deed restrictions may be removed by:

With the exception of certain tax and/or mechanic's liens, priority of claim among liens is determined by:

Jack, Jerry and Jill buy property together with stated equal interests and the right of survivorship. Their form of ownership is known as:

The deed which contains no warranties is called:

When a properly executed deed conveys an interest in property to the person who accepts it, which of the following is NOT a requirement of a valid conveyance by deed?

Joint tenancy and tenancy in common are distinguished from each other by which of the following statements?

To defend a claim of ownership, the owner must prove:

Roger Lodger leased a house from Manny Mansions. The lease contract, when properly executed and delivered, created:

A husband and wife in a community property state are divorced. Their former community property:

A life estate is classified as which of the following?

Severalty ownership results when:

A Freehold Estate will in all cases have each of the following characteristics EXCEPT:

Mabel Mosely owned an easement footpath across neighboring property. School children would occassionally use the path in walking to and from school. When abel became interested in roses, she fenced her entire lot but did not provide a gate to the footpath. What is the probably result of this action?

Greg Houser wished to give his nephew a residential lot as a wedding present. Greg properly executed a deed and left it with his attorney for safekeeping. Greg died before the wedding and the delivery of the deed. The result is:

The words of conveyance in a deed state:

Which of the following statements is correct with regard to the purpose of adverse possession laws?

A partition suit is used for which of the following?

Which of the following is a distinguishing characteristic of a special warranty deed?

When a waterline recedes permanently exposing additional land, it is known as:

The gift of a property by a nuncupative will would NOT be known as a:

What is a bequest?

What is an example of legacy?

The recording of a deed results in:

What was the Civil Rights Act of 1866 specifically about?

You cannot discriminate against people based upon the protected clauses. What are the exceptions to this law?

A promissory note:

A security instrument:

A security deed allows you to:

Regarding a mortgage, when you pay off the debt:

Which word describes the quality, quantity, and extent of rights and interests in real estate, real property, or realty?

Which is an estate of possession?

Who creates a Conventional Life Estate?

Which is true of an Ordinary Life Estate?

Which is true of a Pur Autre Vie?

Which is true of a Fee Simple Determinable?

Which is true of a Fee Simple Condition Subsequent?

Which real estate contracts DON'T have to be in writing?

Who would hold a Non Freehold Estate?

An estate for an uncertain amount of time, a lifetime, or longer is:

What does Fee Simple mean?

What does Fee Simple Absolute mean?

Which is true of an Estate at Will?

What is the difference between and eviction and an ejection?

Which are legal life estates?

Which is true about Homestead Protection?

The clause in a mortgage which cancels the lender's rights and claims against pledged property when the debt is repaid is called:

Real estate loans are customarily evidenced by two instruments: a promissory note and a security instrument (mortgage, deed of trust, security deed). While the security instruments are not negotiable, the note is, because:

The law which requires a 7 day waiting period after delivery of the disclosures and an additional 3 day waiting period if the APR changes more than 0.125% is:

Accoriding to the Real Estate Settlement Procedures Act, the Uniform Settlement Statement must be used at closing when:

Which of the following organizations purchases home mortgage loans from originators?

Who is the largest PMI (Private Mortgage Insurance) Undewriter?

Which of the following organizations functions as a mortgage insurance company?

The principal advantage to the mortgagee of budget mortgages is:

A Veteran obtained a VA loan to purchase a home. Subsequently, the home was sold via loan assumption to a non-veteran purchaser. Which of the following statements is correct?

Which of the following is NOT a characteristic of a VA-backed loan?

Which of the following statements expresses the relationship between mortgage money and interest rates?

A mortgage loan had an outstanding balance of $58,000 at the time of foreclosure. The encumbered property sold for $57,000 at public auction. The lender:

The Federal Truth-in-Lending law applies to which of the following transactions?

Which of the following best describes the APR?

Given the same term, interest rate and loan amount, then:

John borrowed $50,000 to be amortized over thirty years in order to purchase a home. His monthly payments were to be made under a constant mortgage plan. This means:

A loan in which portions of funds are released as improvements are completed is known as:

A loan which provides for the borrower to make smaller payments initially and to compensate later by making larger payments is called:

A three-party instrument which transfers title to the third party as security for a debt owed by the first party to the second party is known as:

The person who signs a mortgage note is known as the:

The clause in a mortgage which allows the lender to call the outstanding loan amount due and payable should the borrower fail to make payments on time is called:

When real estate is sold "subject" to an existing loan, then:

The right to reclaim property between the time of default and foreclosure sale is known as the:

A delinquent borrower may attempt to avoid foreclosure by:

FHA mortgage insurance:

A loan which uses an index and margin to determine the rate is called:

Mary and James Robinson are selling the home they purchased 5 years ago with an FHA loan. The new buyer:

The total interest charged on a $12,000 straight loan for five years at a 12.5% interest per annum is:

Homer Houser borrowed $60,000 at 14% annual interest and agreed to make monthly payments of $711 on his 30-year amortized loan. Of his first month's payment, how much was applied to principal?

If an interest payment of $115.50 is made every three months on a $4,200 loan, what is the annual interest rate?

Tippins borrowed $12,000 on a straight note secured by a mortgage against the home. Tippins made monthly payments of interest computed on a 9 percent annual rate for the full term of the note. The total interest payments were $3,780.00. The term of the note was for how many months?

In order to make a change to a contract according to the law of parole evidence, in the state of Georgia, you must:

The APR is the total cost of credit to the borrower. As such, the actual APR number shown in any advertising is:

When a loan is to be secured by a new automobile, the lender may take:

If Ms. Baker wishes to borrow $100,000 from your bank, would her transaction be covered by the provisions of Regulation Z?

Which of the following is true?

The Federal Reserve Bank's discount rate:

The secondary mortgage market:

One of the primary direct sources of money for mortgage loans for borrowers on residential property is:

According to Federal Law, a lender is limited to the collection of ONLY a credit report fee prior to the borrower receiving a Good Faith Estimate. The law that imposes this restriction is:

If Smith had a constant mortgage payment on a $90,000 mortgage loan at 10% interest, how much of the first payment would go to principal reduction if Smith had no monthly escrows and the total payment was $72.50?

PMI would only apply to:

Which kind of insurance applies to a convential home loan?

Which kind of insurance applies to an FHA or VA home loan?

A security deed:

An alienation clause usually:

Ms. Brown purchased an underdeveloped lot and plans to build a house on the lot next year. She paid one-fourth down and the seller took back a first mortgage on the property for the balance to be paid over the next 15 years. Which of the following would adversely affect Ms. Brown's plans for a new mortgage on her new house next year if it were excluded from her security deed?

A loan which includes monthly payments of taxes and insurance is commonly referred to as:

If a seller should choose to sell his/her property under the provisions of a land sales contract, then he/she would be protected to some extent by:

When a borrower pays for mortgage insurance at closing on a conventional loan, whose risk is the insurance always covering?

All of the following are true with respect to a VA loan EXCEPT:

What is true of a conditional commitment?

What is true of a certificate of reasonable value (CRV)?

If a borrower owes $300 in interest on a promissory note for $10,000 after 3 months, what is the interest rate being charged?

RESPA requires:

An ad states the monthly mortgage payments on a loan are "only $995". Regulation Z requires further disclosure of all but which of the following?

Which organization deals primarily in mortgages for low-income housing?

You list a property for an owner who is in financial distress and must sell to meet creditor's demands. You should tell a prospective purchaser all of the following EXCEPT:

As a buyer's agent, Broker Brown sells a property listed by Broker Smith. The buyer wants the property for a commercial purpose, but it has recently been down-zoned to residential and Broker Smith is aware of this fact. All of the following are true EXCEPT:

A broker takes bushels of corn from a farmer in the amount of $10 per bushel as commission. Several days later, the broker sold the corn for a profit. The broker's action constitutes:

What is it called when a client fires an agent?

What is it called when an agent fires a client?

Which of the following would not, of itself, terminate an agency?

A seller lists property with a broker with no specific commission fee/rate set forth, yet specifying a dollar amount the seller is to receive from the proceeds of the sale. This is:

Someone who employs an agent to act for and in one's stead in specified acts may be:

According to the law of agency, a real estate listing contract is an example of an agreement creating:

If a corporation (principal) gives a third party reason to believe that a broker is it's agent even though the broker is unaware of the appointment, then the law give to the broker:

An agent's obligations to a customer include all of the following EXCEPT:

Broker Brown lists a parcel of real estate that has a tax lien filed against it. Subsequently, it is condemned. What is the status of Broker Brown's listing?

A tenant gives up the right of possession to an apartment but retains the right to take possession if the rent is not paid. This process is an example of:

A broker lists, then sells a property. Prior to closing, it is discovered the owner was adjudged incompetent 10 years ago. Your listing and sales contracts are:

In a contract where all essental elements are there but one can be compromised, it is:

A contract that contains consideration, genuine or mutual assent, legal capacity, and lawful object is:

A prospective purchaser gives $5,000 for an option to purchase a farm at a price of $250,000 for a period of 90 days. This means:

An owner signs a sales contract because of undue pressure by the broker and purchaser. The contract is:

An act by one party intendd to decieve the other party to a contract is an example of:

The term "consideration" as applied to contracts means:

Which of the following has legal capacity to contract on behalf of a dead person's estate?

Should a purchaser default under a land sales (installment) contract, the seller can:?

A lease which specified the beginning date as September 1, 2001 and the ending date as September 20, 2002 would be known as:

In terms of a valid and enforceable contract, consideration is:

An essential element of valid and enforceable contract is:

Sally is a salesperson with Dream Home Brokers. She is working with a buyer who has not signed a Buyer's Agency Agreement and wants to make an offer on a property currently listed with Sam, also with Dream Home Brokers. Sally's duty of loyalty belongs to her broker and:

Four years after the opening ofthe Star Bright Drive-In Theater, the area in which it was created was zoned residential. Which of the following statements is true?

An office park would be an example of which of the following types of land use?

In order for the right of eminent domain to be properly exercised, which of the following criteria must be met?

A Master Plan as prepared by a planning commission would incorporate:

Which of the following is always true regarging real estate taxes?

A builder wished to comply with FHA building standards. Upon examination, the builder found local standards to be equal or, in some cases, exceed the FHA standards in quality of materials and construction. In such case, the builder:

Is it lawful to reconstruct a non-conforming use which has been destroyed by fire?

A building permit is an expression of:

CAN-Spam was the first attempt by the federal government to control commercial email. The provisions of the law require all of the following EXCEPT:

The federally approved pamphlet "Protect Your Family From Lead In Your Home" must be given to a buyer:

Which of the following is NOT an advantage of the cluster pattern of land development?

One should expect a residedential property manager to have knowledge of the following EXCEPT:

Which of the following is an example of steering?

Which of the following would not be a proper regulatory function of zoning laws?

Special assessments may be levied for such improvements as:

An improvement district can only be created by:

Special assessments are apportioned according to:

Floor area ratio is a formula that can be used to:

The total fair market value of all real estate in the village of Longview is $100,000. The assessment rate is 35%. The share of the village budget which is to be paid by ad valorem taxes is $700,000. Your property is assessed at $40,000. Your annual property taxes are:

The purpose of a settlement statement is to:

The term REALTOR applies to any:

The lobby, hallways, and elevators of a condominium would be classified as:

In a planned unit development, the land under an individual dwelling is owned by:

Rules governing the owner's association of a condominium complex would be found in the:

Where do CC&R's (conditions, covenants, and restrictions) come from?

To be in compliance witht he provisions of the Do-Not-Call Improvement Act, a salsesperson may not:

A broker is required to scrub their no-call list:

The Martins purchased their home 7 years ago for $140,000 and, at that time, paid $1,800 in acquistion costs. They are currently under contract to sell for $205,000. During the time of their ownership, they enclosed the porch for $15,000 and added a half-bath for $9,000. What is the Martin's adjusted cost basis?

The market value of a home is $210,000 and the assessment rate is 40% of the value. How much property tax is owed if the mill rate is 24 mills?

A broker earned a commission of $17,150 and the rate of commission was 7%. What was the sales price?

John has listed his property with EZ Sell Realty. At what price must the property be sold for John to net $38,000, if his loan balance is $155,400 and he has agreed to contribute $4,000 toward the buyer's costs and pay EZ Sell Realty a 6% commission?

• Sarah will pay 2 1/4 discount points on behalf of the buyer
• Sarah will pay a 7% commission
• Taxes of $2213 have been paid and are to prorated at closing
• Sarah's existing mortgage has an outstanding loan balance of $119,475.25 bearing an interest rate of 7.25%
• Sarah has been advised that an insurance proration for the existing insurance policy will be refunded.  The annual policy premium is $572 with the policy premium due date being March 17th

• The PMI rate has been quoted by the lender at 0.63%
• Bill's new annual hazard insurance premium will be $584
• Bill will be required to establish the escrow account with 5 months of property tax, 3 months of hazard insurance, and 3 months of private mortgage insurance
• The interest rate of Bill's new loan will be 7.75% per annum with a payment factor of $6.14 per thousand
• Bill will pay the state of Georgia transfer tax and intangibles tax
• The total remaining closing cost to be charged to the buyer is 2.5% of the loan amount