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Real Estate

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Question
Answer
An agent has a fiduciary relationship with the a. client or principle b. customer c. agent d. subagent   show
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show a. special agency  
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show a. implied agency  
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show b. express agency  
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Which of the following is NOT a fiduciary duty? Choose one answer. a. obedience b. disclosure c. confidentiality d. knowledge   show
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show c. failure on the part of the agent to show the property enough times  
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show agency coupled with an interest  
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Representing two principals to a transaction without the knowledge and consent of both is Choose one answer. a. dual agency b. undisclosed dual agency c. subagency d. designated agency   show
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In Louisiana, the law states that, unless there is a written agreement to the contrary, the agent represents Choose one answer. a. the buyer b. the seller c. the person he is with d. himself   show
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A hidden structural defect that would not be discovered by ordinary inspection is called a: Choose one answer. a. caveat emptor b. latent defect c. hazard d. stigma   show
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show . exclusive buyer agency  
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show b. procuring cause  
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show a. fraud  
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When an agent should have known that a statement about a material fact was false, this is called: Choose one answer. a. fraud b. negligent misrepresentation c. negligent omission d. puffing   show
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If an agent is working as an independent contractor for the broker: a. the bro.must withhold SS and income taxes b. he is a broker's employee c. agent is responsible for paying his SS and inc.taxes d. the broker can require the agent to work set ho   show
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show . written or spoken  
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show d. an occupant of the house died of AIDS  
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Which is NOT required to have a RE license? a. anyone selling his own property b. attorneys selling property as part of their professional duties for a client. c. appraisers, trustees, and escrow clerks d. all of the above   show
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show d. consideration. No, instead of money, Louisiana requires cause with a contract.  
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show b. unilateral contract.  
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show an a. executory contract. b. executed contract. c. voidable contract. d. unenforceable contract.  
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show b. void.  
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The Louisiana terms for void and voidable, respectively are a. null and relatively null. b. valid and unenforceable. c. executory and executed. d. legal and illegal.   show
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The essential elements of a valid contract include all of the following EXCEPT a. offer and acceptance. b. consideration (or cause in Louisiana). c. legal capacity and legal objective. d. the date.   show
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When there is an intent to deceive such as lying or intentionally withholding pertinent information, this is known as a. constructive fraud. b. actual fraud. c. mistake of fact. d. mistake of law.   show
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Errors regarding the facts of a contract are called a. constructive fraud. b. actual fraud. c. mistake of fact. d. mistake of law.   show
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show a. novation.  
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Under certain conditions, one party may cancel or terminate a contract. This is known as a. novation. b. substantial performance. c. rescision. d. breach.   show
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Which type of listing is the best one to ensure the broker a commission? a. net listing b. open listing c. exclusive agency listing d. exclusive right to sell listing   show
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Another term for earnest money is a. specific performance. b. liquidated damages. c. deposit. d. reserves.   show
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A listing which is illegal in some states, and allows the broker to keep all proceeds of the sale in excess of a net amount is called a. net listing. b. open listing. c. exclusive agency listing. d. exclusive right to sell list   show
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In Louisiana if no money accompanies the contract, or if it is not stated what type of deposit it is, then it is considered to be a. specific performance. b. earnest money.   show
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show a. an option.  
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show c. when the buyer is notified that the seller has accepted the offer.  
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show a. a new offer. b. a rejection. c. conditional acceptance. d. all of the above.  
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show c. both a and b.  
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show b. equitable title  
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The selling price of a property would be listed how on the closing statement? a. debit to the B, credit to the S b. credit to the B, debit to the S c. debit to the buyer, nothing to the seller. d. credit to the buyer, nothing to the selle   show
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Which law prohibits any type of discrimination based on race? a. The Civil Rights Act of 1866 b. The Civil Rights Act of 1964 c. The Fair Housing Act of 1968 d. The Fair Housing Act of 1988   show
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Which group was added as a protected class in 1974? a. nationality b. sex c. familial status d. handicap   show
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show d. 1988 amendment  
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Which groups would be protected under the familial status category? a. children under 18 living with their parents b. a pregnant woman c. a child under 18 who is living with a person who is seeking legal custody. d. all of the above.   show
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Panic selling for financial gain by insinuating that a minority group is moving into the area is known as a. steering. b. blockbusting. c. redlining. d. permissible practice.   show
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Refusing to make loans or issue insurance policies in certain areas is known as a. blockbusting. b. steering. c. puffing. d. redlining.   show
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Which of the following agencies are responsible for enforcement of the Federal Fair Housing Laws? a. Office of Equal Opportunity b. Department of Housing and Urban Development c. Federal Courts d. all of the above.   show
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show a. race, color, religion, national origin, sex, familial status, handicapped  
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What act prohibits discrimination on the basis of race, color, nationality, sex, marital status or age in the granting of credit? a. Americans With Disabilities Act b. Equal Credit Opportunity Act c. Fair Housing Act of 1988 d. none of the above   show
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show d. all of the above.  
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What is the penalty for a first offense fair housing violation? a. $2000 b. $5000 c. $11,000 d. $25,000   show
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What is the penalty for a second fair housing offense within the past 5 years? a. $5000 b. $11,000 c. $27,500 d. $55,000   show
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What is the penalty if there have been 2 or more fair housing violations within the past 7 years? a. $11,000 b. $25,000 c. $35,000 d. $55,000   show
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Real property consists of a. land b. improvements c. plants, trees and crops d. all of the above   show
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The term "situs" refers to a. commercial property. b. location. c. how much property is available. d. Economic value.   show
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show d. From the center of the earth and above the earth to infinity.  
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show a. scarcity, modification, fixity of investment, and situs.  
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Do mineral rights transfer when the property is sold? a. Yes, always. b. No, never. c. Yes, unless specifically retained in the contract. d. Only if there has been drilling on the property.   show
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Water rights that apply to land adjacent to running water are called: a. Riparian. b. Littoral. c. Percolating. d. None of the above.   show
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show b. Littoral.  
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In states where water is scarce, the ownership and use of water is often determined by: a. First come first served. b. Ownership of the land adjacent to the water source. c. Doctrine of prior appropriation. d. A judge.   show
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show d. Percolating waters.  
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show b. improvements.  
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An item of personal property which has been permanently attached to real property such as a light fixture or a bathtub is known as a a. Fixture. b. Improvement. c. Component.   show
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Which of the following are methods for determining what is and is not a fixture? a. Agreement between the parties. b. Method of attachment. c. Intention and adaptability. d. All of the above.   show
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The method by which real property may become personal property is called a. Adaptability b. Annexation c. Severance d. Attachment   show
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What type of fixture is considered personal property even though it is attached to the building? a. Annexed property b. Trade fixtures c. Movables d. There is no such thing.   show
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show  
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b. Trade fixtures   show
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Another name for fructus industriales is a. Fructus naturals b. Emblements c. Trade fixtures d. Allodials   show
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show a. the "Bundle of Rights"  
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A type of ownership which extends for an indefinite length of time and includes some or all of the rights contained in the Bundle of Rights is called a a. freehold estate. b. non-freehold estate   show
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show b. non-freehold estate  
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show a. fee simple or fee simple absolute  
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A type of ownership which has conditions placed on it is known as a: a. qualified fee estate b. determinable fee estate c. Both A and B d. Neither A nor B   show
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show a. condition subsequent  
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show c. life estate  
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show a. conventional and legal  
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Ownership by one person is known as ownership in a. severance b. severalty c. indivision d. common   show
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Ownership by two or more people is known as a. co-ownership b. ownership in severalty c. sole ownership d. common ownership   show
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show a. tenancy in common.  
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A type of co-ownership in which all owners must acquire their interest at the same time, hold an equal share, and has the right of survivorship is: a. tenancy in common b. joint tenancy c. tenancy by the entirety d. community pr   show
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show b. a husband and wife  
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show c. community property  
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A type of ownership in which the owner owns shares of stock rather than real property is called a a. co-operative b. condominium c. MUD d. PUD   show
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A form of ownership involving several owners holding fee simple title to individual units in a property and common ownership in the property's common grounds is called a: a. co-operative b. condominium c. MUD d. PUD   show
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show d. Mixed Unit Developments (MUD's)  
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show a. sole proprietorship  
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show a. general partnership  
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Which type of business ownership has the disadvantage of being subject to double taxation? a. Sole proprietorship b. General Partnership c. Limited Partnership d. Corporation   show
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Which of the following is NOT a type of voluntary transfer? a. public grant b. private grant c. public dedication d. eminent domain   show
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The party conveying title is known as the a. grantor b. grantee c. giver d. mortgagor   show
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show c. public dedication  
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show b. deed  
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To be valid, a deed must have all the following EXCEPT a. names of grantor and grantee b. consideration c. description of property being conveyed d. signature of grantee   show
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Which of the following types of deeds is the best one for the grantee? a. general warranty deed b. special warranty deed c. quitclaim deed d. bargain and sale deed   show
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show b. special warranty deed  
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Which type of deed provides the LEAST protection for the grantee? a. general warranty deed b. special warranty deed c. quitclaim deed d. bargain and sale deed   show
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A type of deed that guarantees more than the quitclaim but less than the special warranty deed is the a. warranty deed b. bargain and sale deed with covenant c. bargain and sale deed d. specialty deed   show
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Which of the following are types of specialty deeds? a. administrator's deed b. executor's deed c. sheriff's deed d. all of the above   show
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show b. vesting clause  
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Which clause in a deed contains the actual words of conveyance? a. granting clause b. vesting clause c. execution clause d. acknowledgment   show
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Which of the following are types of Involuntary Transfer? a. Eminent Domain b. Escheat c. Adverse Possession d. All of the above   show
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The right of the government to take private property for public use is known as: a. eminent domain b. condemnation c. escheat d. adverse possession   show
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If one of the owners in a joint tenancy or tenancy in common wishes to force the sale of the property, he does so through: a. escheat b. condemnation c. partition suit d. eminent domain   show
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The acquisition of title to property by possession of the property for a statutory number of years is called a. eminent domain b. escheat c. voluntary transfer d. adverse possession   show
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When an owner dies without leaving a will and without heirs, his property reverts to the state. The term for this is: a. escheat b. eminent domain c. adverse possession d. acquisitive prescription   show
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A will which is prepared by an attorney, witnessed and signed is known as a a. statutory will b. holographic will c. mystic will d. nuncupative will   show
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show b. intestate  
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show b. holographic will  
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show c. probate  
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show d. executor  
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Acquiring property through natural or artificial causes, or acts of God is a type of involuntary transfer which is called a. devise b. accession c. succession d. none of the above   show
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show a. alluvion  
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The gradual exposure of land behind a receding waterline is called a. erosion b. alluvion c. reliction d. dereliction   show
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show an a. constructive notice b. acknowledgment c. verification d. affirmation  
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First hand information regarding a property is known as a. Actual notice b. Constructive notice c. Verification d. Acknowledgment   show
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A brief summary of all recorded instruments which have affected the title to a property is called a   show
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show an a. attorney’s opinion b. abstract of title c. chain of title d. certificate of title  
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show an a. attorney's opinion b. abstract of title c. suit to quiet title d. certificate of title  
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An insurance policy which protects the lender for the amount of the loan as to problems with the title to the property is called a a. mortgagee's policy b. mortgagor's policy   show
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show d. subrogation  
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show d. constructive notice  
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The power of the government to enact and enforce laws to protect the health, safety, morals and welfare of the general public is called a. eminent domain b. zoning c. police powers d. encumbrances   show
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A change in zoning from a high density use to a lower density use, for example, from residential to agricultural is known as a. spot zoning b. downzoning c. protective zoning d. variance   show
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A building built before a zoning ordinance was enacted, but is allowed to continue until the building is torn down or its use is changed, is called a a. non-conforming use b. variance c. conditional use permit d. directive zoni   show
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show d. buffer zones  
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show c. requiring building permits  
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A monetary claim upon the property of another, which uses the property itself as security for payment of a debt is a a. lien b. escheat c. assessment d. taxation   show
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A property tax that is imposed only on a specific segment of the community to pay for improvements for that segment is called a a. lien b. specific lien c. special assessment d. spot zoning   show
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show b. specific lien  
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show d. $250  
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A claim or burden on a property which limits, restricts or otherwise affects one's interest or use of that property is called a   show
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show are types of private liens? a. mortgages b. mechanic c. judgments d. all of the above  
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A recorded notice of impending litigation against a property is called a. lis pendens b. lien c. judgment d. mortgage   show
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A mechanic's lien for an unpaid swimming pool would be an example of a: a. Voluntary specific lien b. Involuntary specific lien c. Voluntary general lien d. Involuntary general lien   show
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show c. Property taxes, mechanic's liens, all other liens by date recorded  
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An agreement that changes the priority of liens is a   show
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show a. restrictive conditions  
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If there is a conflict between zoning ordinances and restrictive covenants, which one takes precedence? a. the zoning ordinance b. the restrictive covenant c. the most restrictive one d. neither   show
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show an a. restrictive covenant b. easement c. lien d. zoning right  
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show an a. easement by necessity b. easement in gross c. easement appurtenant d. easement in general  
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show an a. easement appurtenant b. easement in gross c. easement by necessity d. right of use  
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show a. dominant estate  
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Easements may be created by a. mutual agreement b. necessity c. prescription d. all of the above   show
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show a. It is terminated.  
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show an a. easement b. encroachment c. license d. servitude  
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show an: a. license b. encroachment c. encumbrance d. easement  
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show d. All of the above  
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Which is the LEAST acceptable form of property description? a. metes and bounds b. rectangular survey c. lot, block and tract d. street address   show
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show c. It can be used to describe land of any shape.  
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show a. north-south  
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show b. 6 miles  
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A township has a theoretical area of a. 1 square mile b. 640 acres c. 36 square miles d. 48 square miles   show
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show b. range lines and township lines  
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show c. 36  
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show c. correction line  
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A description that reads "Lot 5, Block B, Wildwood Heights" would be which type of description? a. metes and bounds b. lot, block and tract c. rectangular survey d. municipal address   show
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show c. 43,560  
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show d. both A and B  
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Given a description: “the SW ¼ of the NE ¼ of the SE ¼ of Section 16”. Which quarter of Section 16 is this land in? a. the southeast b. the northeast c. the southwest d. the northwest   show
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Every fourth township line serves as a a. datum point b. bench mark c. correction line d. setback   show
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show b. lot, block and tract  
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show c. 43,560  
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A section is a. one square mile b. 640 acres c. 36 square miles d. both A and B   show
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Given a description: “the SW ¼ of the NE ¼ of the SE ¼ of Section 16”. Which quarter of Section 16 is this land in? a. the southeast b. the northeast c. the southwest d. the northwest   show
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What are the two MAIN functions of a property manager? a. to produce income and maintain the value of the property. b. To collect rent and take care of repairs c. To show property and lease space d. To handle complaints and mai   show
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show c. general agency  
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What are the two MAIN functions of a property manager? a. to produce income and maintain the value of the property b. To collect rent and take care of repairs c. To show property and lease space d. To handle complaints and maintain secur   show
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show c. general agency  
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The landlord is the _____________ , and the tenant is the _____________ . a. lessor, lessee b. lessee, lessor c. rentor, rentee d. rentee, rentor   show
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show c. reversionary  
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The right of the lessor to remove tenant’s personal property and hold it until rent is paid is called: a. right to eviction b. right to sequester c. right to assign d. right to retain improvements.   show
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show c. non-freehold  
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show a. tenancy for years  
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show b. periodic tenancy  
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A leasehold estate that runs indefinitely with no term or expiration date is a. tenancy for years b. periodic tenancy c. tenancy at will d. tenancy at sufferance   show
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When a tenant occupies a premises without the landlord’s consent, it is called a. tenancy for years b. periodic tenancy c. tenancy at will d. tenancy at sufferance   show
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A type of lease which requires fixed payments at regular intervals and does not include the costs of taxes, insurance, or maintenance, is a a. gross lease b. fixed lease c. straight lease d. all of the above   show
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show b. net lease  
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show c. percentage lease  
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A type of lease in which the rent is tied to an external index, such as the cost-of-living index or the consumer price index, is a   show
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show b. ground lease  
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show d. sale-leaseback  
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The type of lease that is held by a shareholder   show
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show are ways in which a lease may be terminated? a. expiration of the term of the lease. b. Agreement of the parties c. Eviction d. All of the above.  
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When a tenant is forced to vacate the premises by the landlord for non-payment of rent, or some other breach of the contract it is called a. actual eviction b. constructive eviction   show
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When a tenant is forced to vacate the premises because of a breach of contract on the part of the landlord, such as failure to repair the heating unit, this is called a. actual eviction b. constructive eviction   show
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An additional time period in which the borrower can pay a debt and redeem his property is called a. equitable right of redemption b. loan extension c. collateral d. late payment   show
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show c. promissory note  
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show b. collateral  
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Under the Title Theory, who is the legal owner of the mortgaged property? a. the lender b. the borrower   show
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Under the Lien Theory, the borrower holds legal title to the pledged property and the lender holds a a. conditional title b. equitable title c. lien against the property. d. Deed   show
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Under the Lien Theory, title is said to ___________________ to the lender. a. default b. hypothecate c. manifest d. lien   show
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When the debt is paid, the mortgage is said to be a. dead b. redeemed c. hypothecated d. defeated   show
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show c. A or B  
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The borrower, or person making the loan is the a. mortgagor b. mortgagee   show
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show b. mortgagee  
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If a promissory note is not secured by a mortgage, it is called a   show
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A clause in a promissory note that gives the lender the right to demand payment in full of the entire unpaid debt if the borrower defaults is called a   show
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A clause in a promissory note which provides for a penalty if the debt is paid off early is called a   show
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The action which cancels the note when the full debt is paid and defeats any interest the mortgagee has had in the collateral property is called a. satisfaction of judgment b. de-pledging c. collateral removal d. cancellation act   show
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The clause in a mortgage which pledges the collateral property to the mortgage is called the a. satisfaction clause b. warranty clause c. granting clause d. defeasance clause   show
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The clause in a mortgage that states that the mortgagor has good and clear title to the property and has the right to convey it is the a. granting clause b. warranty of title clause c. defeasance clause d. title clause   show
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show a. defeasance clause  
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A clause which may be included giving the lender the right to increase the rate of interest during the length of the mortgage is a   show
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show a. promise  
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show a. principal, interest, taxes, and insurance  
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A clause which makes the mortgage non-assumable (assumable means that a buyer can assume or take over the seller's mortgage) is a   show
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A clause which is found in certain types of mortgages that gives permission for another, subsequent lender to assume the rights of a 1st mortgage lien is called a a. alienation clause b. acceleration clause c. subordination clause d. defeasance cl   show
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The right of a title company to receive any damages available to the insured when the title company has made a payment to settle a claim covered by a policy is called a. subordination b. subrogation c. defeasance d. alienation   show
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The Trust Deed differs from a mortgage in that it involves ____________________ parties. a. two b. three c. four d. unlimited   show
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In a Trust Deed, the borrower is known as the a. trustor b. trustee c. beneficiary d. buyer   show
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show b. Bare or naked title  
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show an a. deed of reconveyance b. transfer deed c. trustee's deed d. defeasance deed  
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show d. power of sale clause  
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Which of the following is a form of owner financing? a. Contract for Deed b. Bond for Deed c. Purchase Money Mortgage d. All of the above.   show
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In which of the following types of owner financing does the seller retain title to the property until the full debt is paid? a. Contract for Deed b. Bond for Deed c. Purchase Money Mortgage d. Both A and B   show
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What is the advantage to the borrower in owner financing? a. He can get a larger loan. b. He can get a lower interest rate. c. He may have a smaller cash output to obtain the loan. d. There is no advantage.   show
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show d. Purchase Money Mortgage  
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Another name for Contract for Deed is a. Installment Land Contract b. Conditional Sales Contract c. Agreement to Convey d. All of the above.   show
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Under which type of foreclosure is the lender required to refund to the borrower any profit realized on the sale of the foreclosed property? a.strict foreclosure b. foreclosure by sale c. friendly foreclosure d. mortgage foreclosure   show
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In some stat, if the lender is unable to recover his full interest in the foreclosed property, he may seek a ??, which allows the lender to attach and seize the borrower a.deficiency judgment b.strict foreclosure c.ordinary process d.executory pro   show
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Which of the following is true of Deed of Trust Foreclosure? a. It is the most common type of foreclosure b. The property can be sold without going through the court action of foreclosure c. It eliminates the statutory period of redemption d. All a   show
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In some cases, the borrower simply gives the property to the lender and the lender cancels the note and forfeits the right to a deficiency judgment. This is a. deed in lieu of foreclosure b. friendly foreclosure c. Dation en Paiement d. all above   show
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show a. equitable redemption  
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In some states there is an additional period of redemption after the foreclosure sale. This is called a. equitable redemption b. statutory redemption c. ordinary process d. executory process   show
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The quickest process for foreclosure is a. ordinary process b. executory process   show
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show a. conventional and government backed  
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The process of determining the risk a lender is incurring by lending a sum of money to a certain borrower is called a. evaluating b. underwriting c. loan approximation d. estimating   show
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The term used to describe the relationship between the amount of the downpayment and the amount of the loan is called the a. loan to value ratio b. equity c. appraisal d. deposit   show
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A buyer purchases a property for $120,000. The property appraised for $125,000. The down payment is $24,000. How much is the loan to value ratio? a. 75% b. 80% c. 85% d. 90%   show
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show a. private mortgage insurance  
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The function of the FHA loan program is to a. provide funds for financing property b. insure loans against the borrower c. guarantee loans d. secure housing for the poor   show
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Which statements is TRUE of the FHA insurance program? a.based on Mutual Mortgage Insurance (MMI) b.Bor pays insurance premium known as Mortgage Insurance Premium (MIP) c.Revenues generated from MIP’s are used to cover losses from Br default d.All   show
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show a. True  
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Which of the following is NOT true about FHA loans? a. FHA loans can be assumed b. FHA loans can NOT be sold on the 2dry market c.FHA loans are exempt from the federal usury law   show
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While FHA loans are insured, VA loans are a. guaranteed. b. secured c. 100% d. never guaranteed or insured   show
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The loan guarantee amount which the veteran is eligible to receive on a VA loan is referred to as the a. reasonable value b. guarantee amount c. entitlement d. CRV   show
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show d. There is a maximum limit set on the amount of the loan a veteran can obtain  
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show a. $400  
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Andrew secures a loan for $40,000 at 7.5% interest for 20 years. The monthly payment is $322.24. What is the principle payment for the first month? a. $22.24 b. $72.24 c. $250.00 d. $300.00   show
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show c. $37,337 . Multiply the monthly payment times the total number of payments in 20 years, then subtract the original loan amount. $322.24 X 240 = $77,337 - $40,000 = $37,337  
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show d. All of the above.  
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show c. 1600  
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show b. blanket mortgage  
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A mortgage which is secured by both real and personal property is a a. package mortgage b. blanket mortgage c. purchase money mortgage d. wrap-around mortgage   show
🗑
A mortgage which is used for owner financing and combines an assumption and owner financing is a a. package mortgage b. blanket mortgage c. purchase money mortgage d. wrap-around mortgage   show
🗑
A type of interim financing used for construction and is paid out in draws at regular intervals is a a. interval loan b. construction loan c. package loan d. blanket loan   show
🗑
A loan which calls for payments of interest only for the term of the loan with the entire principle due at the end of the term is a a. straight term loan b. amortized loan c. partially amortized loan d. balloon loan   show
🗑
show b. amortized loan  
🗑
A loan is made for $50,000 at 8% interest for 30 years. The factor from the amortization table for $1000 is 7.65. Find the monthly payment, principle and interest. a. $300.00 b. $333.33 c. $382.50 d. $395.00   show
🗑
A type of loan which is typically amortized over 20 or 30 years, but with a term of 5 years and a balloon payment at the end of the 5 years is a a. partially amortized loan b. adjustable loan c. straight loan d. graduated loan   show
🗑
show d. graduated loan  
🗑
show a. reverse mortgage  
🗑
An arrangement in which the property is sold and leased to the seller, usually to raise capital for a business, is a a. reverse mortgage b. sale and leaseback c. buydown d. open end loan   show
🗑
The group of lenders who facilitate the buying and selling of mortgages that have been made by the primary mortgage market, by taking over loans that primary lenders have originated is a. Institutional lenders c. 2dry lenders d. Farmers Home Admin.   show
🗑
Individuals who act as intermediaries between the borrower and the lender, qualifying the buyer and finding lenders are a. Mortgage brokers b. Mortgage bankers c. Banks d. Savings and Loans   show
🗑
show c. Federal Home Loan Mortgage Corporation  
🗑
A group similar to Fannie Mae and Freddie Mac, except that it purchases agricultural loans and issues guaranteed mortgage-backed securities is c. Federal Home Loan Mortgage Corporation d. Federal Agricultural Mortgage Corp.   show
🗑
Regulation Z of the Truth in Lending Law establishes guidelines for a. disclosure of loan costs, including annual percentage rate b. the right of rescission c. fair advertising practices d. All of the above   show
🗑
Business and commercial loans are not covered by the Truth in Lending Law. a. True b. False   show
🗑
show c. closing costs  
🗑
RESPA applies to a. first mortgage transactions backed by FHA or VA b. HUD loans c. Loans that are to be bought by FNMA, GNMA, or FHLMC d. All of the above   show
🗑
Which of the following is NOT deductible on your federal income tax? a. mortgage interest payments b. real estate taxes c. homeowners insurance d. loan discount points   show
🗑
show d. all of the above  
🗑
The profit realized from the sale or exchange of an asset is a. capital gain b. deferred gain c. real gain d. preferred gain   show
🗑
show True  
🗑
A lot measures 50 feet by 150 feet. What is the area in square feet? a. 750 square feet b. 5000 square feet c. 7500 square feet d. not enough information   show
🗑
show b. 108.9 feet  
🗑
A room measures 20 feet by 30 feet. Carpet costs $25 per square yard. How much will it cost to carpet the room? a. $166.67 b. $1600.00 c. $1666.67 d. $15,000   show
🗑
The penalty for non-compliance of Regulation Z is a. $1,000 b. $10,000 c. $10,000 per day d. There is no monetary penalty   show
🗑
show a. Foreign Investment and Real Property Tax Act  
🗑
show a. IRS 1099 MISC form  
🗑
show b. 1031 tax-deferred exchange  
🗑
Anti-trust laws prohibit a. price fixing b. agreement between brokers to divide their markets c. Board of Realtors setting commission rates d. All of the above   show
🗑
The selling price of the property would be listed on the closing statement as a. credit to buyer, debit to seller b. debit to buyer, credit to seller c. debit to buyer, nothing to seller d. credit to seller, nothing to buyer   show
🗑
show a. credit to buyer, nothing to seller  
🗑
The pay-off of seller's mortgage would be listed on the settlement statement as: a. credit to buyer, debit to seller b. debit to buyer, credit to seller c. debit to seller, nothing to buyer d. credit to seller, nothing to buyer   show
🗑
show b. credit to buyer, debit to seller  
🗑
A lot measures 50 feet by 150 feet. What is the area in square feet? a. 750 square feet b. 5000 square feet c. 7500 square feet d. not enough information   show
🗑
show b. 108.9 feet  
🗑
show c. $1666.67  
🗑
A property sold for $175,000. The commission was 6%. What was the dollar amount of the commission? a. $2,916 b. $10,000 c. $10,500 d. $15,000   show
🗑
A property sold for $150K. The commission was 6% & was split bet/ the listing broker and the selling bro. The selling bro gave the sales agent 60% of his share. How much did the sales agent receive? a. $2,700 b. $4,500 c. $9,000 d. none of the abo   show
🗑
A 50 acre tract of land sold for $15,000 per acre. The commission was 10%. The selling agent received 50% of the commission paid to the broker. How much did the selling agent receive? a. $750 b. $3,750 c. $37,50 d. $37,500   show
🗑
A seller wants to sell his house. With the proceeds he must pay off an existing mortgage of $30K, pay closing costs of $2,000, and he wants to receive $10K cash. He must pay a 6% com. What must the selling price be? a. $44,680 b. $44, 520 c. $44,250   show
🗑
show a. $99,200  
🗑
show b. $75,000  
🗑
show d. $712.50  
🗑
If the loan amount is $60,000 and the interest rate is 8%, what is the interest payment for the first month? a. $400 b. $480 c. $500 d. $600   show
🗑
A property has an assessed value of $25,000. The tax rate is 20 mills. What is the tax? a. $450 b. $525 c. $500 d. $475   show
🗑
show b. $40,000  
🗑
A property sells for $72,000. An 80% loan is arranged with 1½ discount points to be paid. What will be the cost of the points? a. $750 b. $864 c. $1,080 d. $1,350   show
🗑
show c. $2,125  
🗑
show c. $400,000  
🗑
If net annual income is $35,000 and the value is $500,000, what is the capitalization rate? a. 6.5% b. 7.0% c. 7.5% d. 8.0%   show
🗑
show c. $525  
🗑
An office building has a monthly rental income of $8,500. The value of the building is $1,250,000. What is the GRM? a. 11.75 b. 12.08 c. 12.26 d. 13.25   show
🗑
show b. $100,000  
🗑
show b. 80,000  
🗑
show a. situs  
🗑
show b. positive situs  
🗑
An estimate of value which is NOT a formal appraisal but uses the same principles and many of the same methods as the sales comparison approach is a a. market value b. situs evaluation c. competitive market analysis or CMA d. estimate of demand   show
🗑
show d. demand  
🗑
There are 4 determinants of value. Each of these must be present in order to have value. They are a. demand, utility, scarcity, and transferability b. demand, utility, situs, & transferability c. demand, utility, supply, title   show
🗑
The principle of value that is the basis for the Income Approach to value is a. anticipation b. contribution c. externalities d. substitution   show
🗑
The principle of value that is the basis for subdivision restrictions is a. competition b. contribution c. conformity d. highest and best use   show
🗑
A home is purchased for $125,000. The appraised value is $124,000. A loan is approved for 80%. What is the dollar amount of the loan? a. $99,200 b. $100,000 c. $100,200 d. $101,000   show
🗑
show b. $75,000  
🗑
show a. $400  
🗑
A property has an assessed value of $25,000. The tax rate is 20 mills. What is the tax? a. $450 b. $525 c. $500 d. $475   show
🗑
The tax on a property is $600. The tax rate is 30 mills. Property is assessed at 50% of market value. What is the market value of the property? a. $20,000 b. $40,000 c. $50,000 d. $60,000   show
🗑
show b. $864  
🗑
Discount points for a 30 year loan at 8½ % are 2 ½. The loan amount is $85,000. How much will the points cost? a. $1,500 b. $1800 c. $2,125 d. $2,500   show
🗑
A building has a gross annual income of $50,000 and expenses of $10,000 per year. If the capitalization rate is 10%, what is the value of the building? a. $50,000 b. $350,000 c. $400,000 d. $500,000   show
🗑
show b. 7.0%  
🗑
show b. $100,000  
🗑
An office building has a monthly rental income of $8,500. The value of the building is $1,250,000. What is the GRM? a. 11.75 b. 12.08 c. 12.26 d. 13.25   show
🗑
show a. Equal credit opportunity  
🗑
show b. The state  
🗑
show b. contribution  
🗑
A couple obtains an ARM loan with a 7% i. rate.The rate is tied to a national index with a 2 pt margin and 1%/year cap. If the index for the new year is 6.5%, what will the new i.rate on the loan be? a. 8.5% b. 8% c. 9% d. not enough informati   show
🗑
show a. externalities  
🗑
A type of listing agreement in which the seller retains the right to sell the property himself without paying a commission even if listed with a broker is a. exclusive agency b. exclusive right to sell c. net listing d. open listi   show
🗑
The maximum interest rate for FHA loans is set by the a. lender b. national government c. regional government d. city government   show
🗑
show d. highest and best use  
🗑
The principle which states that the value of an inferior property is increased by being near a better property, and the value of the better property is decreased by being near an inferior property, is b.Progression and regression c.Conformity   show
🗑
show a. surplus productivity  
🗑
Property values may be affected by a. demographic trends b. current financial climate c. levels of wages and salaries d. all of the above   show
🗑
show a. assemblage  
🗑
show b. plottage increment  
🗑
show b. reconciliation  
🗑
The form in which a residential appraisal is usually done is called the: a. letter b. narrative c. checksheet d. reconciliation   show
🗑
The method of arriving at a value by estimating the cost to build a similar structure at today's prices is: a. reproduction cost b. replacement cost c. building cost d. new cost   show
🗑
The method of arriving at a value by calculating the cost to build an exact replica of the building is called a. reproduction cost b. replacement cost c. exact building cost d. replication cost   show
🗑
Which of the following methods of estimating cost is the most accurate and the most time consuming? a. square foot method b. cubic foot method c. unit-in-place method d. quantity survey method   show
🗑
When would an appraiser use the Cost Approach? a. when he can't find comparables b. for the first house in a subdivision c. For a church or other structure for which there are no comparables. d. all of the above   show
🗑
True of False? You can not use the Cost Approach to appraise land. a. True b. False   show
🗑
show b. replacement cost  
🗑
show a. reproduction cost  
🗑
show d. quantity survey method  
🗑
show d. all of the above  
🗑
True of False? You can not use the Cost Approach to appraise land. a. True b. False   show
🗑
show b. incurable  
🗑
show a. physical depreciation  
🗑
A type of depreciation that results from outdated design or technology is called a. physical depreciation b. functional depreciation c. external depreciation d. incurable depreciation   show
🗑
If your property is located next to a toxic waste dump, you might expect to have which of the following types of depreciation? a. physical depreciation b. functional depreciation c. external depreciation d. none of the above   show
🗑
show c. effective age  
🗑
If a property has a value of $80,000 with a land value of $30,000 and is being depreciated over a period of 50 years, how much would the property depreciate each year? a. $8,000 b. $5,000 c. $3,000 d. $1,000   show
🗑
The Sales Comparison Approach is based on the principle of: a. substitution b. change c. competition d. anticipation   show
🗑
show d. as many as necessary  
🗑
The subject property is a 2,500 sq.ft home. A comparable is found that has 2,300 sq.ft. Using a value of $100 per sq.ft, what adjustment should be made for the difference in square feet? a. +$20,000 b. -$20,000 c. +$2,000 d. -$   show
🗑
Which method of determining value is generally the best one and the most used? a. Sales Comparison b. Replacement Cost c. Reproduction Cost d. Gross Rent Multiplier   show
🗑
show b. anticipation  
🗑
The annual gross income minus all operating expenses for the year is the a. net annual income b. gross rent multiplier c. capitalization rate d. net gross income   show
🗑
show c. capitalization rate  
🗑
show c. $500,000  
🗑
An office building has a monthly income of $10,000. The GRM for the area is 12. What is the value of the building using the gross rent multiplier formula? a. $120,000 b. $144,000 c. $1,200,000 d. $1,440,000   show
🗑
show b. associate broker  
🗑
The sponsoring broker for a licensed corporation, limited liability company, or partnership is the a. qualifying broker b. associate broker c. limited broker d. designated broker   show
🗑
show b. All of the above  
🗑
show c. timeshare registrants  
🗑
A real estate broker who holds a salesperson's license is a: a. qualifying broker b. sponsoring broker c. manager d. associate broker   show
🗑
show b. not authorized to sell real estate.  
🗑
A person who engages the professional advice and services of a licensee as his agent is known as the a. client b. customer c. seller d. buyer   show
🗑
A licensee who is employed by & represents only the buyer in a RE transaction, regardless of whether the agent’s commission is paid by the buyer or by the seller is known as a: a. selling agent b. buyer's agent c. buyer broker d. This is not legal   show
🗑
The Louisiana Real Estate Commission consists of how many members? a. 3 b. 6 c. 9 d. 12   show
🗑
show a. Appointed by the governor.  
🗑
show c. Baton Rouge  
🗑
The Commission has the power to: a. issue licenses, registrations, and certificates. b. censure licensees, registrants, and certificate holders. c. suspend or revoke licenses, registrations, and certificates. d. All three of th   show
🗑
Which of the following may be considered grounds for refusing to issue a real estate license? a. a felony conviction b. making a false statement on the license application c. being under the age of 18. d. All of the above.   show
🗑
show d. All of the above.  
🗑
show d. 12  
🗑
show b. The Fair Housing Act  
🗑
To obtain a broker's license you must have held an active salesperson's license for at least: a. Six months b. One year c. Four years d. Five years   show
🗑
show a. Yes, if it has been granted a certificate of authority to do business in Louisiana.  
🗑
show c. 10  
🗑
Upon termination of a qualifying broker’s affiliation with a corporation, limited liability company or partnership, the Commission must be notified and a new qualifying broker designated within a. 3 days b. 5 days c. 10 days d. 3   show
🗑
Which is true regarding licensees who have placed their license on inactive status? a.They must renew their inactive license each year b.They are not required to renew each year d.In order to transfer to active status they must take an exam   show
🗑
show c. 20  
🗑
show d. All of the above.  
🗑
The broker’s license is required to show a. name of business b. address of business c. name of agents d. Both A and B   show
🗑
show d. Both A and B  
🗑
show c. 5 days  
🗑
show c. 5 days  
🗑
show a. one calendar year  
🗑
show d. March 31  
🗑
If a RE broker conducts business from more than 1 place of business, which is true? a. He is required to have one license for his main office only b. He is required to have a branch office license for each place of business c. No license is required   show
🗑
show a. a licensed agent.  
🗑
show c. his or her sponsoring broker  
🗑
An associate broker or salesperson can assign payment of his or her commission to an unlicensed corporation or limited liability company of which he or she is the sole officer, director or shareholder. a. True b. False   show
🗑
  show
🗑
show c. The sponsoring broker has 72 hours to return all licenses to the Commission.  
🗑
show a. It should be done immediately.  
🗑
Persons signing any document in a REtransaction which pertains to more than one party should be provided with a copy of the completed document within _____ days after the final signature is affixed to the document. a. 2 b. 3 c. 5   show
🗑
Written agreements for the sale or management of real estate are required to specify a definite expiration date. a. True b. False   show
🗑
  show
🗑
Any licensee who is the custodian of any client funds must report the institution of bankruptcy proceedings to the Commission within a. 3 days b. 5 days c. 7 days d. 10 days   show
🗑
show b. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.  
🗑
The Commission will not become involved in disputes concerning a. disbursement of escrow funds b. inspection of records of a brokerage firm. c. Disputes between licensees regarding payment of commissions. d. Misuse of escrow fu   show
🗑
show b. 20  
🗑
show d. having been convicted of a misdemeanor.  
🗑
A licensee must be notified of charges made against him by the Commission by what means? a. in person b. by registered mail c. by certified mail d. Any of the above.   show
🗑
show b. Nineteenth Judicial District Court  
🗑
The maximum penalty for violations of the License Law is a. $2000 and 5 years imprisonment. b. $4000 and 4 years imprisonment c. $5000 and 5 years imprisonment d. $10,000 and 10 years imprisonment   show
🗑
The purpose of the RE Recovery Fund is a. provide funds for RE education for licensees c. reimburse any person who has suffered monetary damages because of acts committed by a licensee in a RE transaction   show
🗑
What is the source of funds for the Recovery Fund? a. license fees b. fees from penalties c. the state d. sale of real estate publications   show
🗑
show c. Any claimant who has received final judgment in court against a licensee in a real estate transaction.  
🗑
What is the maximum amount that any claimant may receive from the Recovery Fund? a. $10,000 b. $20,000 c. $30,000 d. $50,000   show
🗑
What is the maximum amount of payments that can be made for claims arising out of the same transaction regardless of the number of claimants? a. $20,000 b. $30,000 c. $50,000 d. There is no limit.   show
🗑
show c. $50,000  
🗑
show predial servitude  
🗑
Mr. Smith sold a right of way to Illinois Central to build a railroad across his property. This is known as a   show
🗑
show sale with warranty  
🗑
show c. sale with warranty  
🗑
When a husband dies leaving a wife and children, what right does the wife have in the husband's portion of the community property? a. abusus b. usufruct c. naked ownership d. joint tenancy   show
🗑
Who are considered “forced heirs” in Louisiana? a. the decedant's children b. the decedant's wife c. the decedant's parents d. the decedant's siblings   show
🗑
show a. naked owner  
🗑
show c. consideration  
🗑
A person who inherits something from a person who died intestate is called a   show
🗑
If a man dies testate leaving a wife and one child, what is the disposable portion of his estate? a. One fourth b. One half c. Three fourths d. All   show
🗑
show an a. executor b. testator c. administrator d. legatee  
🗑
Unharvested crops belonging to someone other than the owner of the land would be a. movables by anticipation b. separate immovables c. real property d. incorporeal possessions   show
🗑
show b. immovables  
🗑
A vendor's privilege usually covers the: a. sale price b. liens c. judgments d. mortgage balance   show
🗑
show c. synallagmatic  
🗑
An owner financed loan can not have an interest rate in excess of a. 12% b. 14% c. 17% d. 21%   show
🗑
In Louisiana, joint tenancy is a. illegal b. the same as co-ownership c. the same as community property d. legal, but rarely used   show
🗑
An arpent is b. about 5   show
🗑
show c. to the banks of the waterway  
🗑
show a. farm lease  
🗑
A shared driveway with one property in front and one behind it would most likely be a a. personal servitude b. predial servitude c. party servitude d. community property   show
🗑
show a. intestate succession  
🗑
show c. forfeiture of the entire interest  
🗑
show d. $25,000  
🗑
show b. donation inter vivos  
🗑
show d. dedicating the streets in a subdivision to the city  
🗑
Ownership of land along the seashore is a. 20 feet from the water b. to the point of high tide c. to the water d. 20 feet into the water   show
🗑
What type of lien would take priority over a first mortgage? a. tax lien b. mechanic c. both d. neither   show
🗑
1. The type of conveyance that holds the greatest guarantee for the buyer is a: a. sale without warranty b. quitclaim c. sale with warranty d. bond for deed   show
🗑
show a. To promote the advancement and more efficient administration of the real estate industry and thereby serve to protect the public.  
🗑
  show
🗑
Licensees are required by the Commission to have: a. homeowner b. errors and omissions insurance c. flood insurance d. broker   show
🗑
show a. at the first face to face meeting  
🗑
Which of the following is considered a material fact or defect requiring disclosure to potential buyers? a. a leaky roof b. an occupant of the property has AIDS c. a person was murdered on the property d. the property is haunte   show
🗑
Which of the following is required in every written lease, rental agreement, or contract for sale? a. marital status of lessee b. street address of seller or lessor c. notice of statewide database of location of registered sex offender   show
🗑
show d. customer  
🗑
When a broker appoints one agent from his company to represent a client, that agent is known as the a. selling agent b. designated agent c. co-op agent d. appointed agent   show
🗑
An agency relationship in which the licensee is representing both the seller and the buyer in the same transaction is a. Sub-agency b. Single agency c. Dual agency d. Illegal   show
🗑
Acts that a licensee may perform for a person that are informative only in nature are called a. ministerial acts b. informational acts c. legislative acts d. representative acts   show
🗑
show d. suggesting an offering price for a property  
🗑
When there is no written agency agreement, who does the licensee represent in a transaction? a. the seller b. the buyer c. both d. the one he is with   show
🗑
show b. This is not a violation of License Law.  
🗑
show d. with regard to leases of three years or less when no sale of the subject property is anticipated.  
🗑
show b. honesty and fairness  
🗑
show False  
🗑
A licensee may act as a dual agent a. when it is in the best interest of the parties involved b. only with the informed written consent of all clients. c. whenever the agent is the listing agent. d. when the agent is the designate   show
🗑
When acting as a dual agent, what form must be signed by the clients? a. agency disclosure pamphlet b. buyer representation agreement c. dual agency disclosure form d. caveat emptor form   show
🗑
Which CAN NOT be disclosed by the licensee when acting as a dual agent? a. material defects b. Confidential information about the seller c. Confidential information about the buyer d. Confidential information about buyer or sel   show
🗑
show a. by written agreement  
🗑
Is a client considered to be liable for acts or omissions of his real estate agent? a. yes b. no   show
🗑
show d. All of the above.  
🗑
Upon passing the licensing examination, the applicant must submit to the Commission a statement of sponsorship signed by a licensed real estate broker acknowledging that the broker will serve as the applicant's sponsoring broker within   show
🗑
Pre-licensing education courses must be completed within ________ of the date of initial application for a real estate salesperson or broker license. a. 6 months b. one year c. three years d. five years   show
🗑
If an applicant for licensing does not take the state exam within 90 days after turning in his license application to the Commission what will happen?   show
🗑
Any applicant who takes and fails to pass the initial licensing exam must a. apply to the Commission to retake the exam and pay a processing fee. c. Can retake the exam the next day. d. go back to real estate school.   show
🗑
If an applicant fails to pass both portions of the state exam within a period of one year from the initial examination date the applicant must wait how long before applying to retake the exam.   show
🗑
show b. The licensee  
🗑
A salesperson or associate broker may not be issued a license until the license of his or her sponsoring broker has been renewed. a. True b. False   show
🗑
A licensee may not renew his license on active status unless he or she has completed ____ hours of continuing education during the immediately preceding license period. a. 4 b. 8 c. 10 d. 12   show
🗑
Licenses may be renewed delinquently for a period of ________ after December 31st. a. 3 months b. 6 months c. 9 months d. 12 months   show
🗑
A licensed real estate broker who is exclusively affiliated with a sponsoring broker is a   show
🗑
Who may have a sales escrow account, rental trust account or security deposit trust account? a. salespersons b. associate brokers c. sponsoring brokers d. associate and sponsoring brokers   show
🗑
When a salesperson or associate broker transfers his license or terminates his relationship with the sponsoring broker, the sponsoring broker has how many days to return the license of the salesperson or associate broker to the Commission?   show
🗑
A transfer fee will not be charged when the salesperson or associate broker applies for transfer within 60 days of a. the death of the spons. brok. b. suspension or revocation of the spons. brok. c. transfer of the spons. brok. d. all of the above   show
🗑
When a licensed agency is purchased by another licensed agency, the sponsoring broker of the acquiring agency must notify the Commission within a. 2 business days b. 3 business days c. 5 business days d. 7 business days   show
🗑
  show
🗑
show  
🗑
show b. registered with the Secretary of State  
🗑
show  
🗑
show a. name and telephone number of broker  
🗑
All printed advertisements for the sale or lease of residential RE MUST indicate a. the license # of broker b. the name of the salesperson c. the address of the brokerage firm d. the month and year the advertisement was printed or publi   show
🗑
show c. that he is a licensed agent  
🗑
A broker advertising on an internet site or e-mail must include on each page a. broker's name b. city, state and country in which the broker's main office is c. The regulatory jurisdictions in which the broker holds a RE brokerage license d. All   show
🗑
An associate broker or salesperson advertising on an internet site or e-mail must include on each page a.name and name of sponsoring broker b.city, state and country in which the sponsoring broker c.regulatory jurisdi.where he holds a RE licensed.all   show
🗑
show a. a sales escrow checking account  
🗑
show a. a rental trust checking account  
🗑
show b. 5  
🗑
show d. Either  
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d. Either Can a broker open additional escrow account to accommodate business transacted out of branch offices? a. Yes b. No   show
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show d. all of the above  
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When does a broker have to notify the Commission of the closing of an escrow account? a. 10 days before closing the account b. 10 days after closing the account c. 5 days before closing the account d. 5 days after closing the a   show
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show b. They must be maintained until all monies are disbursed  
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show  
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