Real Estate License Practice Test – Transfer of Property

Question 1

Miguel recorded a grant deed to Tom. Miguel afterward changed his mind and attempted to cancel the delivery, saying there had 
been no delivery to Tom. Why did Miguel's attempt fail?

Accepted Answer

With recording, delivery and acceptance are assumed.

Answer

He was unsuccessful only if Tom can prove he took possession.

Answer

The deed is acknowledged by recording it.

Answer

The act of recording establishes an entry in the title chain.

Question 2

Bell got $950,000 for her home residence. She paid $750,000 for the house four years ago. During her ownership,
 she invested $300,000 in capital renovations. What may Bell deduct on her tax return?

Accepted Answer

None of the above

Answer

3000 gain

Answer

700, 000 gain

Answer

150,000 loss

Question 3

A deed is a ____

Accepted Answer

It is not necessary to record the transfer of title.

Answer

provides constructive feedback

Answer

Buyer occupancy is required.

Answer

When it's recorded, it gives actual notice of its content.

Question 4

In the case of an owner-occupied single-family dwelling, which of the following is not tax deductible under federal income tax laws?

Accepted Answer

Expenses for landscaping.

Answer

Interest payments on a mortgage.

Answer

A prepayment penalty was incurred on a mortgage.

Answer

Taxes on property

Question 5

A written summary of the chain of title is known as a (n) ____ once the public records have been reviewed.

Accepted Answer

the title's abstract

Answer

Affidavit of Title

Answer

guarantee of title

Answer

a title acknowledgement

Question 6

A real estate licensee is prohibited from doing all of the following, except , unless otherwise/vise licensed.

Accepted Answer

real estate for sale

Answer

draft building plans

Answer

provide tax advice

Answer

provide legal counsel

Question 7

The word "recurring costs" is used in an escrow statement to refer to

Accepted Answer

Account items are impounded.

Answer

prorations of insurance

Answer

fees for recording

Answer

Fees for title insurance

Question 8

Which of the following individuals or entities is prohibited from working in the escrow industry?

Accepted Answer

The transaction's principal

Answer

Broker in real estate

Answer

An lawyer

Answer

A corporation that is either domestic or international.

Question 9

Sarah Collins, a single woman, holds the recorded title to a piece of real estate. She executes a transfer to the property
 exclusively in the name of Angel Castro, a married woman, after her marriage to James Castro. The following is a discrepancy
 in the grantor's name:

Accepted Answer

a cloud on the title.

Answer

immaterial so long as the property is adequately described.

Answer

a flaw that could turn both spouses' separate property into joint tenancy property

Answer

consequently cured after 90 days

Question 10

Mr. Rodrigo's duplex had a $750,000 cost base when he bought it. According to the tax assessor, the value breakdown is 
80 percent renovations and 20 percent land. Mr. Rodrigo depreciated the improvements at a rate of 2% per year for the 
first five years. Mr. Rodrigo then paid $50,000 to a licensed contractor to install a swimming pool. How much will the 
property's modified cost base be once the pool is finished?

Accepted Answer

740,000

Answer

700,000

Answer

790,000

Answer

730,000