Real Estate Practice Exam 3

. Which brokerage relationship status requires that a broker disclose known facts that materially affect the value of residential property?

any status requires the disclosure.

single agents

transaction brokers

licensees with no official brokerage relationship

Correct! Wrong!

A licensed sales associate of a brokerage corporation may

own stock in that corporation.

be an officer of that corporation.

be a director of that corporation.

none of the above.

Correct! Wrong!

Which of the following situations requires disclosure of brokerage relationship to a customer? I. sale of improved property with four units or fewer II. leasing of property with four units or fewer unless the owner occupies one of the units III. sale of agricultural property with 10 acres or less

I only

I, II and III

I and III

I and II

Correct! Wrong!

Which of the following acts as an insurance agency?

Fannie Mae

Freddie Mac

FHA

VA

Correct! Wrong!

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

easement by prescription.

easement in gross.

easement appurtenant.

easement by necessity.

Correct! Wrong!

Permission to use another's property that may be withdrawn at will is

an easement appurtenant.

a license.

an encroachment.

a deed restriction.

Correct! Wrong!

Which of the following is not required on a contract?

offer and acceptance

both parties competent

legal object

execution and two witnesses

Correct! Wrong!

An owner wishes to have a survey made of a commercially-zoned parcel. It is 90 feet on the front, 159 feet on the north side, 120 feet on the back and 180 feet on the south side. It is not in a recorded subdivision. Which survey method would be most appropriate for the parcel?

lot and block

rectangular

government survey

metes and bounds

Correct! Wrong!

Which of the following is immediately south of Township 2 South, Range 6 West?

Township 2 South, Range 7 West

Township 2 South, Range 5 West

Township 1 South, Range 6 West

Township 3 South, Range 6 West

Correct! Wrong!

Jim, Matt and Jack were co-owners of a parcel of real property. Matt died, and his coownership passed, according to his will, to become part of his estate. The parties owned the property as

tenants by the entireties.

tenants in common.

tenants at will.

joint tenants.

Correct! Wrong!

Which happens to the monthly payments on a fixed payment mortgage?

Principal and interest portions of each payment remain the same.

Interest portion of each payment increases.

Interest portion of each payment decreases.

Principal is reduced and interest rates change annually.

Correct! Wrong!

Dexter Bonham is purchasing property through Lawrence Hafner, licensed real estate broker. Hafner sold the same piece of property last year. Because Bonham is experiencing financial difficulties, Hafner tells him that the title was insured last year, and that he will go to the courthouse to determine if there have been any liens filed since then. This would save the buyer nearly $500. Which is correct?

Please select 2 correct answers

Bonham should write a letter of commendation to the local Board.

Hafner may not do this.

If no liens have, in fact, been filed, Hafner cannot be prosecuted.

Hafner may do this if he writes out a formal opinion of title and agrees to stand responsible in case of later problems.

Correct! Wrong!

To be valid, a deed must be

signed and acknowledged.

signed and witnessed.

signed and recorded.

all of the above.

Correct! Wrong!

Henry has a capital gain on the sale of his home of $197,000. He has owned the property for two years. The sales price was $425,000. Costs of sale were $7,000, qualified fix-up costs were $1,000 and moving costs were $2,000. How much must Henry pay in capital gains taxes on this sale if his normal tax rate is 25%?

$39,400

$98,500

$197,000

$-0-

Correct! Wrong!

If an owner arrives before the foreclosure sale and pays the entire debt, court costs and legal fees, and interest on the property, he is exercising his

right of stay of homestead foreclosure.

rights of estoppel.

right of redemption.

rights of certiori.

Correct! Wrong!

A single agent broker who wishes to remain loyal to the principal yet be involved in both sides of a transaction

may be a transaction broker for the other party.

may transition to dual agent with the written approval of both parties.

must work with the other party in a "no official brokerage relationship" role.

are unable to do so if working with the other party in a transaction.

Correct! Wrong!

Title to real property passes to the grantee when the deed is

recorded

signed and witnessed

delivered and accepted

acknowledged

Correct! Wrong!

All the following are methods of transferring legal title to real property except by

a will.

a patent.

a sales contract.

eminent domain.

Correct! Wrong!

The most common method used by the Federal Reserve Board to control the supply of money is by

Urban Development Block Grants (UDAG).

affirmative action.

Tandem Plan.

Open Market Operations.

Correct! Wrong!

A subdivision developer gives the county title to streets in a subdivision. The county accepts the streets for maintenance. This transfer of title is known as

a patent deed.

dedication.

a public grant.

eminent domain.

Correct! Wrong!

Real Estate Practice Exam 3

. Which brokerage relationship status requires that a broker disclose known facts that materially affect the value of residential property?

A licensed sales associate of a brokerage corporation may

Which of the following situations requires disclosure of brokerage relationship to a customer? I. sale of improved property with four units or fewer II. leasing of property with four units or fewer unless the owner occupies one of the units III. sale of agricultural property with 10 acres or less

Which of the following acts as an insurance agency?

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

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

Which of the following is not required on a contract?

An owner wishes to have a survey made of a commercially-zoned parcel. It is 90 feet on the front, 159 feet on the north side, 120 feet on the back and 180 feet on the south side. It is not in a recorded subdivision. Which survey method would be most appropriate for the parcel?

Which of the following is immediately south of Township 2 South, Range 6 West?

Jim, Matt and Jack were co-owners of a parcel of real property. Matt died, and his coownership passed, according to his will, to become part of his estate. The parties owned the property as

Which happens to the monthly payments on a fixed payment mortgage?

To be valid, a deed must be

If an owner arrives before the foreclosure sale and pays the entire debt, court costs and legal fees, and interest on the property, he is exercising his

A single agent broker who wishes to remain loyal to the principal yet be involved in both sides of a transaction

Title to real property passes to the grantee when the deed is

All the following are methods of transferring legal title to real property except by

The most common method used by the Federal Reserve Board to control the supply of money is by

A subdivision developer gives the county title to streets in a subdivision. The county accepts the streets for maintenance. This transfer of title is known as

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