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75 Cards in this Set
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Midterm ques 1
Which of the following is NOT considered and economic characteristic of land? a. Scarcity b. Modification c. Location (situs) d. Immobility |
d. Immobility
==== The economic characteristics of land are: 1. Location, preference (situs) 2. Improvements 3. Fixed investment (economic life) 4. Scarcity Modification can be considered improvement and therefore immobility is the correct answer |
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Midterm ques 2
A property is listed for $110,000. On March 1st, the owner accepts a written offer for $105,000 and the closing date is set for June 15. On March 15th, it is announced that a new shopping center will be built near the property, and the new owner believes the property is now worth $145,000. Which of the following should determine the amount paid at closing? A: The amount specifed by the accepted offer B: A fair market price, as determined by a certified appraiser C: The original listing price, since that is what the seller thought was fair. D. A compromise between the offer and the current value $125,000 |
A: The amount in the specified by the accepted offer
========== When an offer is accepted and signed it becomes a binding sales contract. Since that is the case, Chap 8-14 B: Sales contracts Once it (Sales contract) is signed, the seller is committed to sell and the buyer to buy. |
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Midterm ques 3
Which of the following actions would NOT LIKELY create an agency relationship? A: A broker shows several properties to a customer B: A broker agrees to find a buyer for a friend's home for no commission C: a broker and seller sign a listing agreement D a broker manages a client's rental property |
A: A broker shows several properties to a customer
============= Chap 6-14 C: Buyer Representation client - When a licensee has entered into an agency relationship with a buyer and is obligated to work in the buyers interest with absolute loyalty, that buyer is a client. When a licensee showing property to the buyer is not in an agency relationsip, the buyer is treated as a customer. A client can be offered advise and counsel. A customer cannot. |
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Midterm ques 4
A change in zoning from multifamily to single family is an example of: A: Downzowning B Upzoning C: A variance D: Spot zoning |
A: Downzowning
========= chap 5-2 B: Zoning Sometimes downzoning (rezoning a parcel to a lower density or less profitable use) causes the property value to suffer, and the owner does not necessarily have a right to be compensated |
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Midterm ques 5
A buyer and a seller have a verbal agreement stating that the seller will pay all closing costs. When the agreement was put into writing it stated the buyer would pay all closing costs. If both buyer and seller sign the agreement, who would MOST LIKELY be responsible for the closing costs. a: Seller b: Buyer c: Lender d: Broker |
B: Buyer
====== chap 8-1 A Written or Oral Statute of Frauds provides that the real estate contracts, with very few exceptions (a lease for one year or less) must be in writing to be enforceable |
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Midterm exam; ques 6
A property was listed for $125,000.00 and the broker found a buyer who made an offer of $115,000.00 which was not accepted by the seller. This situation would BEST be described as (an): A: Right to first refusal B: Installment sale C: Option to purchase D: Rejected offer |
D: Rejected offer
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Midterm exam; ques 7
A bowling alley is located on the outskirts of the city. The area was recently rezoned for residential use. Will this change the affect the present operation of the bowling alley? A: Yes, they will have to relocate B: Yes, to continue operating the bowling alley, a petition for a variance must be filed with the zoning appeal board C: No, the bowling alley is considered a nonconforming use because it was constructed prior to the enactment of the ordinance so it may continue operating D: No, only urban renewal clients require absolute compliance |
C: No, the bowling alley is considered a nonconforming use because it was constructed prior to the enactment of the ordinance so it may continue operating.
==================== Chap 5-3 Section 2 NONCONFORMING USE Once a zoning law has been adopted, all NEW structures and land must conform to it. However, zoning is not retroactive, If a store were in business before the zoning law identified the parcel of land it occupies as residential, the store can remain as long as it stays in business. It is a non-conforming use, often also referred to as a "grand fathered" property. |
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Midterm exam; ques 8
Under a lease, the leasehold estate is a right belonging to the: A: Landlord B: Tenant C: remainderman D: Reversioner |
B: Tenant
================== Chap 10-1 "The lease grants to the tenant (lessee) a temporary right of exclusive possession pf the property, to be enjoyed without interference from the landlord or anyone else claiming interest in the property. This non-freehold interest is called a leasehold estate, also known as tenancy. |
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Midterm exam; ques 9
The developer of a property is planning to install an underground septic tank and needs information to determine the soil's absorption and drainage capacity. This information would be obtained from: A: A survey B: A percolation test C: The building codes D: An appraisal |
B percolation test.
===================== chap 12 - 8 G: FACTORS INFLUENCING VALUE 4: Soil Characteristics - Soil can also affect the uses of property and, therefore, the value. For example, residential properties that must use a septic tank, soil absorption rates are improtant. A percolation test was ques 80 on the quiz: The purpose of a percolation test is to determine: the answer was water absorption rates. I think the correct answer is D. Since an appraisal would have been done why should the developer run another test. |
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Midterm exam; ques 10
To allow more intensive usage of subdivision land, a zoning variation would be required to permit which of the following: A: A decrease in the number of building allowed per block B: An increase in the number of building sites per acre C: Deed restrictions prohibiting the sale of any individual lot to a family of fewer than 4 persons. D: Deed restrictions prohibiting the shrinkage of the backyard area in any residential lot. |
B: An increase in the number of building sites per square acre.
============ We know this is an "upzoning" situation and so a variance to increase the number of buildings is the only correct answer. The only other possible answer, C, involves deed restrictions but the question specifically asks about what type of "zoning" variation would be required. |
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Midterm exam; ques 11
A listing agreement provides for the payment of a commission to the broker even of the owner sells the property without the broker's help. This type of listing agreement is called: A: Net listing B: Exclusive Agency Listing C: Exclusive right to sell listing D: Open listing |
C: Exclusive right to sell listing.
================= Chap 6-12 C: Exclusive Right to sell listing. The broker recieves maximum protection in that the right to market is exclusive, and the commission is assured if the property sell, no matter by whom. The contract must be in writing and have a definate date of termination. |
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Midterm exam; ques 12
In a deed which of the following is TRUE? A: The grantee is the seller B: The grantee can be a minor C: The grantor records the deed D: The grantor is the buyer |
B: The grantee can be a minor
================== We can eliminate A and D because the grantor is the seller and the grantee is the buyer. Both of those answers are reversed. C is wrong because the grantors final act (chap4-11 Delivery and acceptance) "Title to real estate is conveyed when a properly executed deed is delivered and accepted by the grantee or the grantee's agent during the grantor's lifetime. This is the grantors final act. At this point the deed has not been recorded but the grantor has completed final act therefore C cannot be correct. Although the contract is voidable in the future, the grantee can be a minor. Also page 4-9 "The GRANTOR must be of legal age and be legally competent." Page 4-10 Under grantee must be named, "A deed is valid if delivered to a minor, to an incompetent or to a grantee using a fictitious name. |
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Midterm exam; ques 13
Which of the following are NOT necessarily appurtenances which pass with the transfer of real property. A: Easements in Gross B: Fixtures C: Property improvements D: Water rights |
A: Easements in gross
========= Easements are either appurtanent or in gross Chap 2-16 b. Easements in gross. When the easement is granted by an individual, it's a personal easement in gross. It is not transferable and will terminate with the death of the person to whom the easement is granted or upon the transfer of the title property. |
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Midterm exam; ques 14
A seller accepts an offer from a buyer on a listed parcel of a residential property. Before the closing, the property is rezoned commercial and due to the increase in value, the seller refuses to sell. The buyers best course of action is to: A: Renegotiate the contract at a higher price B: Enter a suit for specific performance against the seller C: rescind the contract D: Enter a suit for damages against the sellers broker. |
B: Enter a suit for specific performance against the seller.
====================== Chap 8-13 In a default, the innocent party may seek a court order requiring the defaulting party to carry out the precise terms and conditions of the contract. Some states allow this right to buyers only based on the fact that real estate is unique. Monetary damages might not adequately compensate the buyer who was intent on aquiring a specific piece of land based on uniqueness. |
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Midterm exam; ques 15
Which of the following are rental payments guaranteed to increase during the term of the lease? A: escalator lease B: Step-up lease C: Index lease D: none of the above |
B: Step up Lease
================== The key phrase in the question is "gauranteed to increase". The step-up-lease is the only answer where the increase is gauranteed because it increases over time. Each year the tenant pays more. The escalator and index leases are based on market and operation costs which in some circumstances, may go down. |
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Midterm exam; ques 16
A broker and a seller signed a standard listing agreement. Which of the following would NOT be among the acts that the broker was appointed to perform under the terms of this listing. A: Attempt to find a ready, willing and able buyer for the real property B: Sell, trade or convey title to the real property C: Place a "For Sale" sign on the property and market the property D. Prepare a data sheet with information about the property to give perspective buyers. |
B: Sell, trade or convey title to the real property
============== chap 6-18 B: DUTIES OF BROKERS ENGAGED BY SELLERS OR LANDLORDS The broker shall: 1. Perform according to the terms of the contract 2. Promote clients interest by: * Seeking a buyer or tenant at an acceptable price and terms * Timely presenting of all offers * Disclosing known material facts to the client; *Advising the client to get expert advice when needed and; * Timely accounting of all money and valuables None of the duties mentioned include conveying title |
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Midterm exam; ques 17
Which of the following statements best describes a fixture? A: An article that was once personal property B: An article that is personal property C: An article that can be removed upon the sale of the land D: An article that is no longer considered real property |
A: An article that was once personal property.
===================== chap 1 - 5 2. Fixtures A property that was once personal but has become real is called a fixture. |
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Midterm exam; ques 18
A fiduciary relationship would NOT include which of the following duties: A: Care B: Obediance C: loyalty D: Indemnification |
A:CARE
================ Page 6 -2 The agency relationship is considered to be fiduciary when it concerns valuable property or an important transaction. The fiduciary agent is expected to perform at the highest level of competence. Under Agents obligations to the principal (client) we abreviate the duties using the acronym, POLAND Personal Performance Obedience (B in the answer list) Loyalty (C in the answer list) Accountability Notice Due Diligence and Care (this does not refer to A in the answer list The book goes on to show indemnification as a duty the Principal owes to the Agent Since indemnification, obediance and loyalty are fiduciary responsibilities the correct and is CARE |
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Midterm exam; ques 19
A buyer made an offer to purchase the seller's property for $96,000.00 providing the seller would sign a general warranty deed at closing. The seller agreed to the $96000.00 purchase price but agreed to sign a special warranty deed. Has a contractual obligation been created between the buyer and seller? A: Yes, a definate offer was made by the buyer. B: Yes, both the buyer and seller agreed to the purchase price of $96,000.00 C: No, the buyer's offer was rejected and the seller made a counter offer. No, because a broker was not involved |
C: No, the buyer's offer was rejected and the seller made a counter offer
============= |
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Midterm exam; ques 20
A seller is presented with two separate offers from different buyers at the same time. Neither offer would be considered acceptable. if she is anxious to sell the property, the BEST advice would be to: A: Accept both offers B: Reject both offers C: Counter-offer to both buyers D: Accept one offer and reject the other offer |
D: accept one offer and reject the other.
==================== We discussed in class, the thinking here is the client wanted to seel fast so u have to accept one offer. |
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Midterm exam; ques 21
A map of a subdivision indicating the location and boundaries of individual properties is called a: A: Road Map B: Plat Map C: Countour Map D: Survey Map |
B: Plat map
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Midterm exam; ques 22
The seller has a contract to sell the property for $80,000. Another buyer wants to make an offer for $85,000. You should: A: Tell the second buyer the property is already under contract and you cannot present the second offer. B: Make sure the new offer is contingent on the first offer not closing and present it to the seller C: Tell the seller to break the $80000 contract and accept the new $85,000 offer. D: Hold the new offer and present it only if the first contract does not close |
B: Make sure the new offer is contingent on the first offer not closing and present it to the seller
===================== |
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Midterm exam; ques 23
Which of the following properties would most lilely involve riparian rights? a: An apartment complex in the central city B: A desert home C: A cabin next to a D: An ocean front property |
C: A cabin next to a stream
================ Riparian = rivers and streams Littoral = Lakes and Oceans |
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Midterm exam; ques 24
A tenant who has one year lease on an apartment, commencing on January 1st must: A: Give thirty days notice when he/she plans to vacate B: Vacate the premises by December 31st C: vacate the premises within thirty days of the expiration of the lease D: Give ten days notice before vacating |
B: Vacate the premises by December 31st
======== Tenant has to inform 30 days prior Landlord has to inform 60 days prior We discussed in class. Since the question said the lease was for one year it definately had an end date which made it an estate for years. An estate for years no notice is required so A is wrong and since the lease was up the client had to be out by 12/31. B is correct |
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Midterm exam; ques 25
Which of the following would NOT be considered an agent? A: An employee of the MLS B: A property manager of a property owned by a client C: A real estate slaes person licensed by a broker D: A lawyer hold power of attorney for a client |
A: An employee of a MLS
=============== Chap 6 -2 There are three types of agents... A universal agent is authorized to perform any act the principal could perform, for example power of attorney. That makes D incorrect A general agent has the authority to bind the principal in the ongoing conduct of a particular business. Example is a real estate salesperson working for a broker. This makes C and B incorrect A special or a limited agent, is appointed for a particular purpose or to act on a particular occasion, such as the listing agent is a special agent, authorized to market a property. |
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Midterm exam; ques 26
A buyer and seller are negotiating the sale of a house through the mail. A written offer mailed to the offeree is accepted. The offer did not specify the method to communicate acceptance, a contract is created when: A: The offeree signs the offer B: The offeree places the acceptance in the mail C:Offeror signs the offer D: When the acceptance is recoeved by the offeror |
B: The offeree places the acceptance in the mail.
================ Not sure about this answer. In class we talked about the mail box theory, acceptance when in the mail but the book says on page 8-5, that the offer becomes contract when the word is recieved which would make D the right answer. |
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Midterm exam; ques 27
A buyer purchased a house for the listed price of $180,000.00. After the closing the buyer discovered the seller had taken the remote garage door opener and house keys. The buyer would have a valid claim to these items because the would MOST LIKELY be considered: A fixtures B: Chattell (personal) C: Emblements D: Trade Fixtures |
A: Fixtures
============== Chap 1 - 5 MARIA - five tests for a fixture b: Attachments - ...legal attachments, relating to use. A good example is the remote control that operates the garage door opener and the key to the front door. |
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Midterm exam; ques 28
A residential subdivision of single homes would MOST LIKELY be separated from an industrial park by which of the following: A: a commercial area B: a buffer zone C: a subdivision incorporating townhouses D: a school |
B: a buffer zone
==================== chap 5-2 A. LAND USE PLANNING The plan might also provide for buffer zones, such as landscaped parks, playgrounds or wooded area, to separate residential areas from those that are commercial or industrial. |
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Midterm exam; ques 29
An adult buyer who is illeterate signs a contract to purchase property from a seller. The buyer understands the nature of the contract because the terms were explained orally. Is the contract binding? A: Yes, because the buyer understands the terms of the contract B: Yes, because all adults are considered legally competent C: No, because the buyer is illiterrate and therefore, legally incompetent D: No, because a guardian must sign for the buyer |
A: Yes, because the buyer understands the terms of the contract
==================== Chap 8-3 A: COMPETENT PARTIES All persons are competent to contract except those excluded by law |
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Midterm exam; ques 30
A person purchased a home in a residential subdivision and wanted to raise chickens in his back yard. Which of the following governmental rights would MOST LIKELY prohibit this activity. A: Building codes, because they contain the greatest number of restrictions for a city dwelling. B: Police power because the police are responsible for deciding where all types of pets are allowed C: Zoning ordinances, because they sometimes regulate the types of pets in each zone D: Building permits, because a permit is required to keep animals in residential areas |
B. Police Power, because the police are responsible for deciding where all types of pets are allowed
================== Chap 5-1 Public restrictions stem from police power of the government. States have a constitutional right to pass laws that requlate land use, in order to provide safety, health, morals and general well being of the public. Through enabling acts, states pass this power along to local governing entities. Governments land use controls include planning, zoning, building codes, public health ordinances and environmental protection laws. |
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Midterm exam; ques 31
Baird finds a prospect for a house under an open listing. The seller signs a sales contract several days later with a different buyer produced by broker Carr. Who should recieve commission for the sale. A. Baird should recieve the entire commission B. Carr should recieve the entire commision C. Baird and Carr should recieve equal shares of the commision D. Baird and Carr should negotiate an agreement as to the division of commission |
B. Carr should recieve the entire commision
==================== Chap 6-11&12 1. Types of listings In an open listing (which can be written or oral in most states) an owner promises a commision to a broker who produces a ready, willing and able buyer at the named price. The owner can have as many open listings as he/she chooses, or even sell the property by owner wth no obligations to pay any broker. |
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Midterm exam; ques 32
A buyer and a broker entered into a buyer agency agreement. The buyer's broker cooperated with another brokerage company representing a seller. The buyers broker would consider the seller to be the: A: Client B: Customer C: Principal D: Agent |
B: Customer
====================== Chap 6-14 C. Buyer representation |
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Midterm exam; ques 33
A person moved into an abandoned farm house, modernized it, began to raise crops, notified the true owner of her recent possession and refused to leave the property. She paid the property taxes and stayed there for 7 years. Is there any chance that this person could claim legal title to the farm by adverse possession? A: Yes, because her use was continous, open, hostile and exclusive B: Yes, because she modernized the house C: No because farm land cannot be acquired through adverse possession D: No, because a notified owner may never lose a title to property through adverse possession |
A: yes, because her use was continous, open, hostile and exclusive
==================== chap 4-4 There is noting in the chapter about informing or not informing the owner. The "squatter" must meet the criteria noted in the scenario plus notorious and actual. Notifying the owner definately makes it notorious and open.Also the other three answers B, C and D are not true. |
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Midterm exam; ques 34
While doing urban renewal the city acquired privately owned property in a deteriorated neighborhood by eminent domain and sold it to a private developer who redeveloped it. Is the city justified in doing this? A: yes, but only if the just compensation is paid to the private landowners B: Yes, but the land must be resold to the original owners C: No because urban renewal is not for public use. D: No because they sold the land to a private developer |
A: yes, but only if the just compensation is paid to the private landowners
=================== chap 4-2 a: condemnation Governmental or quasi-governmental agencies such as railroads or utilities can take title to real property without the owner's consent by their power of eminent domain. This process is called condemnation, requires that THE TAKING BE FOR PUBLIC PURPOSE and that the owners recieve compensation. The government is allowed to sell the acquired land to a private developer for urban renewal. |
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Midterm exam; ques 35
A fixture may be legally removed from a property if: A: There is an expressed agreement allowing the removal B: Its removal does not damage the property C: It does not substantially affect the value of the property D: The sellers intent was not to make it a part of the real property. |
A: There is expresses agreement allowing the removal
====================== cap 1-5&6 Under the MARIA test for fixtures "A" is the best answer. Answer B, its removal does not damage the property and C regarding are not mentioned although I see where there can be an impact but if you had an agreement the point is moot. Also answer D is resolved with an agreement. The sellers intent would have been communicated when the agreement was discussed. |
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Midterm exam; ques 36
Which of the following is a physical characteristic of land? A: destructibility B: Mobility C: Scarcity D: Uniqueness (nonhomogenity) |
D: Uniqueness (nonhomogenity)
================= this was easy. the process of elimination solved this. A: is wrong because land is "indestructable" B is wrong because land is not mobile C is wrong because scarsity is an economic characteristic of land so the only correct answer is D. |
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Midterm exam; ques 37
To insure against a tenant proving to be unsatisfactory, it is a good idea to: A: Check with former landlords B: Ask for a credit report C: Require a deposit in advance D: All of the above |
D: All of the above
=================== chap 10-17 2. Marketing (Renting the Space) Establishing some criteria for tenant selection is critical because it is a well known fact that empty space is preferable to an unreliable or incompatible tenant. A manager will usually insist upon a credit report and references. Checking with a prospective tenant's present and former landlord can be enlightening. |
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Midterm exam; ques 38
A raparian owner's land is washed away by a sudden or violent action of nature. The owner does not lose title to the lost land and the boundary lines stay the same. This would be an example of: A: erosion B: Attachment C: Avulsion D: Encroachment |
C: Avulsion
====================== chap 4-2 1. Transfer by Natural causes The loss of land area might also have two possible causes: Erosion - the gradual wearing away of soil by action of wind and water Avulsion: a sudden change in land mass due to a flood, earthquake, hurricane, etc. Avulsion does not usually cause a change in the boundary line. |
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Midterm exam; ques 39
Something that transfers with the sale of real property would BEST be defined as: A: Trade fixture B. An appurtenance C: an emblement D: Chattel Property |
B: Appurtenance
=================== Chap 1-1 B. REAL PROPERTY OR REAL ESTATE It is not necessary to describe the trees, buildings or ownership rights because they are part of the real estate. The are called appurtenances and they go with the land to successive owners. |
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Midterm exam; ques 40
The intent of the statute of fraud is to: A: Require real estate contracts to be in writing in order to be legally enforceable. B: Protect the public from misrepresentations by the licensees C: Require licensees to disclose property defects to prospective buyers D: to protect the public from dishonest dealings by licensees |
A: Require real estate contracts to be in writing in order to be enforceable
====================== chap 8-8 F: In Writing, As Required By Law The statute of frauds is state law, requiring certain contracts to be in writing and signed in order to be enforceable. This law is designed to protect consumers from problems that can arise in interpreting oral agreements |
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Midterm exam; ques 41
The owner of a property agreed, in writing, to convey to their neighbor the ownership of a piece of land between the owner's fence and the neighbor's property line. Both parties agreed the transfer would take place within four months of the agreement. later, the owner changed their mind and refused to transfer the property to the neighbor. Would the neighbor have any recourse against the land owner? A: Yes, the property owner violated the Statute of Frauds B: Yes, the agreement was in writing and can be enforced C: no, the neighbor only had an easement to use the property D: No, an agreement for only a protion of the property is not enforceable |
B: Yes, the agreement was in writing and could be enforced
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Midterm exam; ques 42
A deed is presumed to have been delivered if it is: A: Signed by the grantor B: Signed by the grantee C: Recorded by the grantor D: Recorded by the grantee |
D: recorded by the grantee
====================== chap 4-11 &12 8. Delivery and Acceptance Once the deed has been recorded, it is presumed that there was a valid delivery and acceptance. |
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Midterm exam; ques 43
A residential property had recently been zoned commercial. The deed restrictions prohibit commercial use of the property. Would the owner be permited to operate a business from the property? A: Yes, the property is zoned commercial B: Yes, zoning takes priority over the deed restrictions C: No, the deed restrictions are more restrictive and therefore would take priority over zoning D: No, the business would be considered a non conforming use |
C: No, the deed restrictions are more restrictive and would take presedence over zoning
=================== chap 5-2 B: Zoning Zoning laws must not be arbitrary or unreasonable, and must be uniformaly applied.....When zoning conflicts with Deed restrictions, whichever is stricter applies |
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Midterm exam; ques 44
Which of the follwing deeds is used in most real estate transfers and offers the greatest protection to the buyer? A: Quit claim deed B: Bargain and sale deed C: General warranty deed D: Special warranty deed |
C: General warranty deed
===================== chap 4-14 E. TYPES OF DEED 1. Warranty Deeds a. General warranty deeds This offers the most comprehensive title protection of any deed. The five covenants of warranty apply not only to title defects arising during the grantor's period of ownership but also to those occurrng before. The grantor is promising to guarantee the title forever and the the granting clause identifies it as a general warranty deed. === The five covenants of title Covenant of Seisin Covenant against encumbrances Covenant of quiet enjoyment Convenant of warranty forever Covenant of furthur future assurances |
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Midterm exam; ques 45
Carlos, a popular rock star, leased entertainment quarters from Wilfred Jones for the period from 5/1/1996 to July 31, 1996. Carlos interest is: A: An estate of years B: A periodic tenancy C: A tenancy at will D: A month to month lease |
A: Estate of years
====================== chap 2-8 B: LEASEHOLD ESTATES 1. Estate for years An estate for years exists when there is a lease agreement that gives the tenant exclusive possession of a property for a specified period ot time. The name is misleading. It suggests that the period be "for years", but this term applies to any contractual agreement that has a definate end, whether it be 100 days , three years, three months or whatever. |
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Midterm exam; ques 46
The law pertaining to the period of time within which legal proceeding against certain actions in a contract must be brought to court is called the: A: Statute of limitations B: Statute of Frauds C: Parol Evidence Rule D Statute of Estoppel |
A: Statute of limitations
==================== chap 8-14 C. Statute of Limitations The statute of limitations defines the time within which an injured party has the right to seek a legal remedy. Unless the legal steps are taken within the legal time limit, the injured oarty is barred from (estopped) from taking action at a later time |
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Midterm exam; ques 47
Which of the following zoning classifications would require new construction in a certain area to conform to a specific type of architecture. A: Incentive zoning B: Aesthetic Zoning C: Bulk zoning D: Directive Zoning |
B: Aesthetic Zoning
==================== chap 5-2 1. Special types of zoning A: Aesthetic zoning - specifies that the architectural styles must be compatible. |
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Midterm exam; ques 48
A person has been in possession of a property for a long time without the owners consent. That person's rights have been determined to supersede those of the fee simple owner. This method of acquiring the title to real property is an example of: A: Escheat B Homestead C: Eminent Domain D: Adverse possession |
D: Adverse possession
====================== elimination: escheat is when the government recieves property after someone dies intestate with no heirs to be found Homestead is a process used to protect the heirs of a deceased owner from debtors Eminent domain is when the state county, city or public utility takes private property for public use by condeming the property. The Adverse property is the answer. |
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Midterm exam; ques 49
A parcel of land is described as follows: Starting at a point of beginning on the north side of Jones Road, thence running north 2,200ft to the iron pin, thence running east 1,500 ft to the iron pin thence running south 2,200 ft to an iron pin thence running west to the beginning. Approximately how many acres are contained in this parcel? A: 33 B: 55 C: 76 D: 92 |
C: 76 acres
=================== 1 acre = 4356 sq ft parcel is 2,200 sq ft by 1500 sq ft 2200*1500=3,300,000 sq ft 3,300,000/43560 = 75.757 |
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Midterm exam; ques 50
The assessed value of all real property within a taxing jurisdiction is the? A: tax rate B: Tax base C: Budget D: Tax role |
B: tax base
================ chap 5-8 7. Tax rate The assessors records showing the total assessed value of all of the properties in the jurisdiction are called the assessment roll, and the total assessed value is the tax base |
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Midterm exam; ques 51
A minor signed a written sales contract to purchase a parcel of property from an adult seller. After the contract was signed, the seller learned the buyer was a minor and declared the contract void. Is the sellers action permissable? A: Yes, the buyer is not competent and the seller can declare the contract void. B: Yes, the buyer violated the Statute of Frauds by not disclosing his age. C: No, in this situation only the buyer could void the contract D: No, both the buyer and seller would have to agree to void the contract |
C: No, in this situation only the buyer can void the contract.
====================== chap 8-3 II: ESSENTIAL ELEMENTS OF A CONTRACT A. COMPETENT PARTIES 1. Minors A contract signed by a minor is voidable "AT THE MINORS OBTION". The action can be taken at any time until reaching the age of majority or within reasonable time thereafter, but failure to disaffirm the contract in a timely fashion might cause it to become binding. |
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Midterm exam; ques 52
A general warranty deed would MOST LIKELY include all the following covenants except" A: Covenant of Seizin B: Covenant of quiet enjoyment C: Covenant of further assurance D: Covenant of restricted ownership |
D: Covenant of restricted ownership
=================== Chap 4-14 E. TYPES OF DEEDS 1. Warranty Deeds a, General Warranty Deed This offers the most comprehensive title protection of any deed, the five covenants of warranty apply (seizin, quiet enjoyment, against encumbrances, warranty forever and further or future assurances). There is no mention of a covenant of restricted ownership |
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Midterm exam; ques 53
When listing a property, the sellers asked the salesperson to give them an opinion on the validity of the title. The salesperson should: A. Check the title before listing the property B: Hire a lawyer and then give them the opinion C: Suggest they get some legal advice D: Have the broker give them an opinion |
C: Suggest they get some legal advice
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Midterm exam; ques 54
A co-owner of a property, held in joint tenancy, conveyed his interest to a buyer by general warranty deed signed only by the co-owner. Which of the following statemets is true regarding this transaction? A: The general warranty deed conveyed the ownership interest of all co-owners B: The rights of the other owners were not transfered by the general warranty deed. C: Owners cannot convey their interest without the consent of the other owners D: The warranty deed made no warranties to the new buyer |
B: The rights of the other co-owners were not transferred by the general warranty deed.
==================== chap 3 - 5 d. Title Unless restricted by agreement, any joint tenant can sell, lease, or mortgage his/her share without the permission, signature or knowledge of the other joint tenant(s)....in the event there are three people or more joint tenants and one of them sells or conveys interest, the joint tenancy will terminate only for that respective share. |
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Midterm exam; ques 55
After the statutory period of time, what action would an adverse possessor file to claim title to the property A: Partition action B: Foreclosure action C: Condemnation Action D: Quiet title action |
D: Quite title action
==================== chap 4-5 Once a claimant has met all the requirements of adverse possession, a quiet title action is filed in court to acquire legal title. |
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Midterm exam; ques 56
Real Property would not include A: Emblements B: air rights C: Mineral rights D: Appurtenances |
A: Emblements
=================== Chap 1-1 B. REAL PROPERTY OR REAL ESTATE Real estate consists of the land plus the things attached to the land by nature (such as trees) or by man (such as buildings) and the legal rights of ownership that go with the land...trees, building, or ownership rights are part of real estate. they are called appurtenanances and they go with the land to successive owners. Air, water and mineral rights are part of the rights of ownership. Emblements are plants and shrubs that are harvested every year and are personal property. |
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Midterm exam; ques 57
Bouton owns an apartment building free of an encumbrance. Bouton has leased an apartment to Frazier who, in turn, sublets to Gresham. A: Frazier transferred the entire right, title, and interest in and to the leasehold B: Gresham should pay Bouton C: If Gresham does not pay rent to Frazier, then Frazier is not liable to Bouton for rent. Bouton must proceed directly against Gresham D. Bouton's agreement with Frazier is not affected by the sublease in terms of Fraziers liability |
D: Bouton's agreement with Frazier is not affected by the sublease in terns of Frazier's liability
==================== Chap 10-8 3. Transfer of tenants Rights, Sublease in a sublease the original tenant, the sublessor (Frazier), transfers less than the remaining leasehold estate to the sublessee (Gresham)....The sublessee (Gresham) pays rent to the original tenant (Frazier), and has no liability to the landlord (Bouton). The sublessor (Frazier) remains liable for rent payments to the landlord (Bouton) through the balance of the lease term |
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Midterm exam; ques 58
The legal remedy of terminatiing the contract and restoring the parties to their original position prior to a contract is called: A: default B: Rescission C: Reversion D: assignment |
B: rescission
==================== chap 8-13 3. Rescission rescission is the canceling of a contract and the returning of the parties to thier original positions. |
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Midterm exam; ques 59
Perhaps the most challenging task of community association manager is: A: Collecting dues and assessments B: providing services such as garbage collection C: Preparing the annual budget D: Acting as a liason between owners and their directors |
D: Acting as a liason between owners and their directors
================ chap 10 -19 |
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Midterm exam; ques 60
Which of the following BEST expresses the difference between building codes and zoning regulations A: building codes apply to the use of real property, zoning regulations apply to the improvements on the property B: Building codes apply to improvements on the property; zoning regulations apply to the use of the property C: Building codes are encroachments on the property. Zoning is a lien D: Zoning is an example of eminent domain and zoning is an example of taxation |
B: Building codes apply to the improvements on the property; zoning regulations apply to the use of the property.
==================== chap 5-2 B. ZONING Within the master plan, zoning ordinances regulate how each parcel of land is to be used. chap 5-4 C. BUILDING CODES Building codes are regulations that set the standard for construction materials, methods and safety procedures. This impacts new construction or remodeling. |
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Midterm exam; ques 61
A lease is all of the following EXCEPT: A: A conveyance B: An option C: A contract D: an agreement |
B: An option
====================== chap 10-1 1. Landlord tenant The lease, which can be in writing or verbal, is the document that provides for the transfer of rights from the landlord to the tenant. It is both an instrument of conveyance (answer "a") and aa contract (answer "C"). It also sets forth the rights and obligations of both parties (therefore an agreement, answer D). |
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Midterm exam; ques 62
A leasing arrangement used by a business property owner to generate capital is called: A: A sandwich lease B: A ground lease C: a sale-leaseback D: an occupancy agreement |
C: Sale-leaseback
====================== chap 10-12 7. Sale-Leaseback A sale leaseback is a financing arrangement in which a property owner sells the property with an agreement to lease it back on a longterm, net lease basis from an investor who bought it. The seller becomes the tenant and the buyer becomes the landlord Advantages to the seller (biz prop owner in this question) * Acquisition of capital, often at a lower cost than borrowing * retention of management-free use of the property; and * the fact that rental payments are tax deductible |
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Midterm exam; ques 63
A salesperson advertising a seller's property should NOT A: Advertise on company stationary B: run advertising in the salesperson's name C: Put up pictures of the property in the brokers office D: Run advertisements in the brokers name |
B: Run advertising in the salespersons name
=================== Not sure about this at all... |
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Midterm exam; ques 64
Which of the following relationships best describes general agency: A: A broker working for a buyer B: A broker woking for a seller C: A broker working for an owner as a property manager D: A broker working for both buyer and seller in the same real estate transaction. |
C: A broker woring for an owner as a property manager
===================== A general agent has the authority to bind the principal in the ongoing of a particular business. A broker working for a buyer or seller cannot bind them and the the business is not ongoing so a,b and d are incorrect. |
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Midterm exam; ques 65
A quit claim deed is generally used to: A Warrant the seller owned the property B: Convey only fee simple title C: Remove a cloud over the title D. make warranties by the grantor with liability for defective title. |
C: Remove a cloud over the title
===================== chap 4-15 4. Quit Claim Deed The quit claim deed is often used to remove a cloud over the title. For example the title search might reveal that a wife has failed to release her dower interest by joining her husband in signing a deed. |
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Midterm exam; ques 66
A city government wants to encourage growth in a particular area and therefore rezones the area. The government would MOST LIKELY be excercising its right of: A: Police Power B: escheat C: Eminent Domain D: Condemnation |
A: Police Power
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Midterm exam; ques 67
An effective residential property manager would often use all of the following: A: Accounting procedures B: Knowledge of hazard insurance C: marketing techniques D: Bond market quotations |
D: Bond Market quotations
==================== chap 10-17 Functions of a property manager 1. Developing a Plan which includes: Knowledge of insurance to gather fixed operation expenses. Marketing the property Accounting and reporting - which covers accounting techniques and also insurance again. Nothing in this section about Bond market quotations |
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Midterm exam; ques 68
In the purchase of real estate the buyer is probably acting in which of the follwoing legal capacities: A: Grantor B: Testator C: grantee D: Guardian |
C: grantee
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Midterm exam; ques 69
A builder has seven houses under construction and hires a real estate agent to find buyers for two of them. The type of agency relationship is probably A: dual Agency B: General Agency C: Special Agency D: Universal Agency |
C: Special Agency
=================== chap 6-2 A special or limited agent is appointed to for a particular purpose or act on a particular occassion |
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Midterm exam; ques 70
All of the follwing are typical provisions in a listing agreement EXCEPT: A: Commision rate to be paid to the broker B closing date of the sale C. names of the seller and broker D: Legal description of the property |
B: Closing date of the sale
===================== when the listing agreement is signed the date if the sale is unknown |
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Midterm exam; ques 71
The method of land description that includes principal merifdians and base lines is called? A: Lot and Block system B: Metes and Bounds description C: Rectangular Survey D: A geological survey |
C: Rectangular survey
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Midterm exam; ques 72
A valid written lease does not require: A A legal description B: An offer and acceptance C: Valuable consideration D: Signatures of both parties |
D: signature of both parties
===================== chap 10-4 Because the lease is a conveyance of land, it must be signed by the landlord and delivered to the tenant for accptance. Although it is a good practice to secusre the tenant's signature as evidence of acceptance it may not be essential to a valid lease. If the tenant takes possession and pays rent,a cceptance is implied. |
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Midterm exam; ques 73
All of the follwoing require written notice to terminate EXCEPT: A: Estate for Years B: Estate from period to period C: Estate at will D: All of the above |
A: estate for years
===================== chap 10-2 A. LEASEHOLD ESTATES 1. Estate for Years ..Since the ending date is specified, there is no need for either the landlord or tenant to give notice when the agreement ends unless the language of the lease rquires it. |
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Midterm exam; ques 74
Baird submits an offer to buy a house, giving the seller twenty four hors in which to make a decision. Under which of the following circumstances would a contract be created A: the seller waits more than 24 hours before deciding to accept the offer B: The seller makes a counter offer to Baird with the seller's initials next to a new proposed closing date C: The seller accepts the offer only to discover that baird has just died D. The seller accepts Bairds offer as presented and notifies him of acceptance within the time specified. |
D: Seller accepts Baird's offer as presented and notifies him of the acceptance with the time specified
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Midterm exam; ques 75
A seller who was recently divorced recieved ownership of the property through the divorce proceeding. She wants to sell the property but her ex-husband's name is on the original deed and she is unable to locate him. Her best action would be: A: File a quiet title of action B: Seek a court action of partition C: Sell th e property as a joint tenant D: File a satisfaction |
A: file a quiet title of action
===================== chap 4-20 D. Quiet title of action A court action undertaken to remove a cloud on a title when it cannot be removed by having people with possible claim sign quit claim deeds, relinquishing their interests. |
