PROPERTY - SUPPLEMENTAL QUIZ

Transcription

1 Chapter 1 PROPERTY - SUPPLEMENTAL QUIZ 1. All of the following items are personal property EXCEPT: A. trade fixtures. B. a privacy fence. C. patio furniture. D. portable dishwasher. 2. A seller wishes to remove certain shrubs planted in the front yard and not include them in the sales price of the home. A. The shrubs must be left and included in the sales price of the home. B. The shrubs can be removed unless they are valuable. C. If the seller planted the shrubs, they can be removed. D. The seller may do so only if permission for the removal is specifically stated in the sales contract. 3. A permanent addition to a building is: A. real property. B. personal property. C. a chattel real. D. an encumbrance. 4. The transfer of land ownership automatically includes: A. emblements. B. fixtures. C. chattels real. D. trade fixtures. 5. Water rights along a large, navigable lake or ocean are known as: A. tidal rights. B. shore rights. C. correlative rights. D. littoral rights.

2 Chapter 1 6. Water table refers to the: A. difference between the high and low water level of a navigable body of water. B. level at which percolating water is found below the earth s surface. C. depth to which a landowner may drill in order to extract water in exercising the right of prior appropriation. D. None of the answers are correct. 7. Of the following items which is considered real property? A. Natural things movable by law B. Notes secured by mortgages on real estate C. Riparian rights D. House plants 8. All of the following are appurtenances EXCEPT: A. riparian rights. B. a garage. C. an apple orchard. D. trade fixtures. 9. Real property is changed into personal property by: A. the right of appropriation. B. severance. C. the law of capture. D. fructus naturales. 10. Which of the following would be considered an artificial monument when used in a metes and bounds legal description? A. A tree B. A fence corner C. A river D. A large rock 11. An adequate metes and bounds description must have all of the following EXCEPT: A. a definite point of beginning. B. four sides. C. closure. D. linear measurements and compass directions.

3 Chapter The point of beginning on a plat of survey is marked with reference to a: A. benchmark. B. datum. C. meridian. D. base line. 13. If a man has 6 acres of land and deeds 3/4 of it to a son and the remainder to a nephew, how many square feet of land does the nephew acquire? A. 261,360 B. 196,020 C. 65,340 D. 43, How many cubic feet of space is there in a warehouse that is 610 feet wide by 140 feet deep and has an 18 foot ceiling? A. 85,400 B. 1,537,200 C. 35 D. 2, Which of the following would be acceptable on a sales contract? A. Legal description to be attached B. Legal description attached and made a part hereof by reference C. The legal description and survey to be provided at closing D. Purchaser to be provided with legal description within ten days 16. When it is necessary to prepare a new metes and bounds description, it should be done by: A. the seller. B. a licensed surveyor. C. the listing salesperson. D. the selling salesperson.

4 Chapter You have a prospective purchaser for a home, and the listing agent has not been able to provide you with a legal description. Which statement describes your best course of action? A. Complain to the Real Estate Commission B. Write an offer without a legal description C. Find the legal description yourself at the courthouse or on the computer D. Contact the seller yourself 18. If the only land description you have provided on your offer is the street address: A. this could be sufficient if there is no other street by the same name. B. this contract is probably unenforceable. C. this amounts to a contingency that must be resolved. D. the contract may be legal but is unprofessional. 19. A metes and bounds description must have all of the following EXCEPT: A. a definite point of beginning. B. the name of the county and state. C. the approximate square footage or acreage. D. compass directions and distances from one point to the next. 20. A metes and bounds description might be insufficient if: I. it does not have enough sides to close. II. it is irregular in shape. A. Only I is true B. Only II is true C. Both I and II are true D. Neither I nor II is true

5 Chapter 2 RIGHTS - SUPPLEMENTAL QUIZ 1. Several legal steps must sometimes be taken before a creditor can have an outstanding debt satisfied through the sale of a debtor s property. Which of the following may be required? A. Judgment B. Attachment C. Writ of Execution D. All of the other answers are correct. 2. Concerning liens, which of the following is INCORRECT? A. Liens are always encumbrances. B. Liens are either equitable or statutory. C. Liens increase the value of property. D. Liens are either specific or general. 3. An easement created for the purpose of giving an owner ingress and egress to his/her landlocked property is: A. an easement in gross. B. an easement by subscription. C. an easement appurtenant. D. an easement by abandonment. 4. Ned owned fifty (50) acres with frontage on Slater Mill Road. Ned sold the front thirty (30) acres to Smith but reserved an easement for the right of access to the back twenty (20) acres. Which of the following is INCORRECT? A. Ned has a dominant estate. B. Smith has a servient estate. C. Smith s estate is subject to Ned s interest. D. Ned s estate in the twenty (20) acres is subject to Smith s interest. 5. A private deed restriction can be made ineffective by which of the following? A. A ground lease B. Conveyance of the property C. Voluntary cancellation by at least two of the affected property owners D. A conflict with zoning laws

6 Chapter 2 6. A provision found only in a deed, which subjects the ownership of land to certain restrictions, is called a: A. covenant. B. condition. C. prescription. D. necessity. 7. A remainder estate may exist at the same time with all but one of the following. A. Fee simple absolute B. Life estate C. Fee simple on a condition subsequent D. Fee simple determinable 8. Encroachments are usually discovered by a: A. title search. B. physical inspection. C. survey. D. recording. 9. For ten (10) years, Mr. Jones had verbal permission to park a car in Mr. Smith s driveway. Mr. Smith sold to Mr. Johnson. A. Jones had a license from Smith; Johnson may continue it or discontinue it as he chooses. B. Jones continuous use over ten (10) years has probably created an easement by prescription, leaving Johnson powerless to revoke Jones s right to continue parking in the driveway. C. Smith s permission for Jones to use a portion of the land for a specific purpose created an easement appurtenant that runs with the land. Therefore, Johnson must allow Jones to continue parking in the driveway. D. Jones use of the driveway was a personal easement in gross that ended when Smith sold to Johnson. 10. An encumbrance may be defined as all the following EXCEPT: A. anything that affects or limits the fee simple title. B. the degree, quantity, nature, and extent of interest in real property. C. rights or interests held by someone other than the fee simple owner of the property. D. a claim, charge, or liability that attaches to real property.

7 Chapter Amy Carson owns two hundred (200) acres that are rich in oil reserves. Her ownership interest is fee simple absolute. She may: A. sell the oil rights but retain fee simple ownership in the land. B. sell the land but reserve the oil rights. C. sell the oil rights to one party and all remaining rights in the land to another. D. do any of the other answers. 12. Which of the following would be a less-than-freehold estate? A. Life estate B. Leasehold estate C. Fee simple estate D. Fee simple determinable estate 13. Jim is an electrician who was hired by ABC Construction to install all of the electrical wiring in a new home. Jim began the work on June 10 and completed the work on June 15. The closing took place on August 20. If Jim was never paid by the general contractor and wishes to file a lien, the effective date would be: A. June 10, against the property owner. B. June 10, against the property. C. June 15, against the general contractor. D. August 20, against the new home owner. 14. The grantor of a life estate may retain a: A. reversionary estate. B. less-than-freehold estate. C. remainder estate. D. fee simple estate. 15. Which of the following is an estate in land? A. Easement B. Lien C. Encumbrance D. Lease

8 Chapter Statutory liens, which are also specific, include: A. judgment liens. B. mechanic s liens. C. mortgage liens. D. estate tax liens. 17. The types of leasehold estates include: A. estates from period-to-period. B. estates for years. C. estates at sufferance. D. All of the answers are correct. 18. General liens that encumber all real and personal property owned by the debtor include: A.mechanic s liens. B. attachment liens. C. mortgage liens. D. judgment liens. 19. An easement may be created in any of the following ways EXCEPT: A. reservation. B. necessity. C. grant. D. merger. 20. The right of enjoyment includes some rights over adjoining land including the right of: A. lateral support. B. eminent domain. C. prescription. D. possession.

9 Chapter 3 OWNERSHIP - SUPPLEMENTAL QUIZ 1. If there is no indication in the deed as to how co-owners are taking title, the law presumes the parties intended to own the property as: A. tenants in common. B. joint tenants. C. general partners. D. severalty partners. 2. Ownership of real estate for such things as schools, roads, parks, and military installations is: A. prescriptive ownership. B. private ownership. C. possessive ownership. D. public ownership. 3. A condominium may be used for which of the following? A. Parking garage B. Shopping center C. Office building D. All of the answers are correct. 4. Husband and wife who own property as tenants by the entirety: A. must both consent to sell. B. may individually file a partition suit. C. must both sign for any debt secured by the property. D. must both consent to sell AND must both sign for any debt secured by the property. 5. A tenancy in common form of ownership entitles each co-tenant to: A. the right of survivorship. B. an equal interest in the property. C. take title free and clear. D. an undivided interest in the property.

10 Chapter 3 6. Al and Sue own property as joint tenants. Under which of the following circumstances will severalty ownership NOT result? A. Sue files a partition suit that divides the property between Al and Sue. B. Al sells his interest to Barry. C. Sue sells her interest to Al. D. Al dies. 7. In order to obtain a proprietary lease on a co-op unit, an individual must buy a: A. license. B. condominium. C. mortgage. D. share of stock. 8. Which of the following characteristics does NOT apply to tenants in common? A. Hold separate title to an undivided interest B. Must own equal shares of interest C. May sell, will, or mortgage their interest D. Are not subject to right of survivorship 9. Corporations are not allowed to own real estate in joint tenancy because of the: A. right to file a partition suit. B. equal rights of possession requirement for this type of ownership. C. right of survivorship. D. limited liability of the stockholders. 10. An undivided interest of the whole is owned by a: A. tenant in common. B. joint tenant. C. tenant by the entireties. D. All of the answers are correct.

11 Chapter In the event of death, which form of ownership permits the deceased to name an heir? A. Tenancy by the Entirety B. Joint Tenancy C. Ordinary Life Estate D. Tenants in Common 12. Carlos would like to liquidate his one-third interest in a business property. His cousin, who has a two-thirds interest, does not agree to selling. Can Carlos file a partition suit? A. Yes, but only if his cousin consents B. Yes, because any concurrent owners, except for a tenant by the entireties,can file C. No, because a tenant in common cannot file for a partition D. No, because he has less than a majority interest 13. Al, Bill, and Rob own property as joint tenants. Upon Rob s death his interest passes to: A. his surviving heirs or those designated in his will. B. his surviving wife, or Al and Bill if she predeceased him. C. his surviving wife. D. Al and Bill. 14. The owners of a limited liability company are called: A. partners. B. stockholders. C. members. D. managers. 15. Which of the following types of ownership cannot be created by operation of law, but must be created by the parties expressed intent? A. Community property B. Tenants in Common C. Joint Tenancy D. Condominium ownership

12 Chapter The Georgia Timeshare Act requires all of the following EXCEPT: A. all advertising must comply with the Fair Business Practices Act. B. trust funds must be held in an escrow account. C. unless exempt by law, sales agents must be licensed. D. a 10 day right-of-recission from receipt of the Public Offering Statement. 17. Kenneth and Randall buy a property as an investment. The deed names both as the new owners, but the instrument is silent as to their respective interests and says nothing about the form of ownership. Under these circumstances which of the following is INCORRECT? A. Each owns an undivided one-half interest. B. A Tenants-in-Common ownership exists. C. Their interests are subject to probate. D. They own the property with the Right of Survivorship. 18. The Georgia Condominium Act requires: A. no right-of-recission for any condominium purchase. B. a 7-day right-of-recission for the purchase of all condominium units. C. a 7-day right-of-recission for the purchase of previously owned condominium units. D. a 7-day right-of-recission for the purchase of new condominium units only. 19. Joint tenancy will most likely be chosen as a form of ownership by husband and wife to: A. defeat dower and curtesy rights. B. avoid personal liability to creditors. C. assure each an undivided one-half interest. D. assure the surviving spouse of sole ownership without probate. 20. Both husband and wife must sign in order to sell or mortgage land held: A. as community property. B. as tenants by the entireties. C. in states with dower D. All of the answers are correct.

13 Chapter 4 TRANSFER - SUPPLEMENTAL QUIZ 1. Priority of interest in real estate is usually determined by: A. date of the document. B. date of recordation. C. actual knowledge. D. reference to Statute of Frauds. 2. Which of the following statements is INCORRECT? A. A deed conveys a present interest in real estate. B. A will conveys no interest in real estate until after the death of the testator. C. A deed conveys a future interest in real estate if so specified by the grantee. D. A will conveys no interest in real estate until it is probated. 3. The covenant in which a grantor promises that the owner owns the property and has the right to convey title to it is the: A. covenant of warranty forever. B. covenant of seizin. C. covenant of quiet enjoyment. D. covenant of further assurances. 4. When performing a title examination, the attorney locates the book and page number where a particular deed is recorded by looking in an alphabetical listing. The subject property is located in a county that uses an index system of recording called: A. torrens index. B. tract index. C. alpha index. D. grantor-grantee index. 5. Title to real property is conveyed by deed when: A. signed by the grantor. B. recorded by the grantee. C. delivered and accepted. D. signed by the grantee.

14 Chapter 4 6. If a grantor conveys title to a farm but retains a one acre tract in the northwest corner, the deed would contain: A. an exception. B. an easement. C. a reservation. D. None of the answers are correct. 7. Carmela bought an owner s policy of title insurance for her new home at a closing that took place in June, A year later a title dispute arose that concerned a claim that the grantor s signature on a deed signed in 1991, was a forgery. Does Carmela s policy cover her? A. Yes, because this type of problem is not an exception to a typical owner s policy. B. Yes, as long as Carmela has paid her annual title insurance premiums. C. No, because the title problem could not be discovered by searching recorded documents. D. No, because the problem occurred long before the policy was written. 8. Murphy owns a sixty-five acre tract of land bordering the Flint River. As a result of a gradual accumulation of soil along the river bank, Murphy acquired an additional ten feet of property. Title to the additional land was acquired through the process of: A. dereliction. B. avulsion. C. accession. D. erosion. 9. If a person dies intestate leaving real property as part of his/her estate, the decedent s heirs will acquire title according to: A. a formal will. B. the laws of descent and distribution. C. escheat. D. an administrator.

15 Chapter A title defect might be removed by: A. an action to quiet title. B. title insurance. C. a certificate of title. D. a partition action. 11. The claim of a person trying to prove the title by adverse possession might be strengthened by: A. tacking. B. paying the property taxes. C. color of title. D. All of the answers are correct. 12. Scott sells his home to Zachary who immediately takes possession but does not record the deed. Three days later Scott sells to Martin who records his deed. The rightful owner is: A. Scott. B. Zachary. C. Martin. D. Zachary and Martin, each having an undivided one-half interest. 13. An amendment or a modification to a will can be affected by: A. a codicil. B. executing a new deed. C. initialing and witnessing the desired changes. D. making a patent. 14. Which of the following is not required for a valid and enforceable conveyance of title by deed? A. A written document B. Habendum clause C. Legal capacity of grantor D. Granting clause 15. A reservation in a deed may be used to create: A. an easement. B. quiet title action. C. a reversion estate. D. a 15 foot piece of land reserved by the grantor.

16 Chapter Actual notice results from which of the following? A. Existence of power lines B. Knowledge learned by inspecting the public records C. A stranger s possession under an unrecorded deed D. An unrecorded deed 17. A break or gap in the chain of title results if: A. a previous grantee failed to record the deed. B. there is an existing cloud on the title. C. a title search reveals a defective legal description in a deed recorded in the public records. D. the title is encumbered. 18. With respect to a decedent s property, the probate court has the responsibility of: A. establishing rightful heirs. B. passing on the validity of a patent. C. appointing an executor. D. finding the testator. 19. The purpose of an acknowledgment is to: A. prevent recordable documents from being signed voluntarily. B. assure the grantee of a valid document. C. prevent forgery of recordable documents. D. to keep the grantee from using a fictitious name. 20. When a Corporate Officer signs a deed it should also have a: A. stamp. B. sticker. C. sign. D. seal.

17 Chapter 5 GOVERNMENT - SUPPLEMENTAL QUIZ 1. Under police power, which of the following CANNOT be done? A. Property can be condemned as unfit for occupancy. B. Property can be zoned. C. Property can be taken away for public purpose, provided fair compensation is given. D. Subdivision regulations can be enacted. 2. When may a salesperson legally refuse to show a house to an Asian prospect? A. When the seller has indicated a desire not to have an Asian own the property. B. When the seller prohibits an Asian from physically coming on to the property. C. When the seller says the property is not to be shown while the seller is out of town. D. Never 3. A developer purchased a parcel of land 10 years ago, at which time the current zoning would have permitted the construction of 80 houses. Now he is ready to build but a recent rezoning now restricts him to 40 houses. Is he entitled to some compensation for the downzoning? A. Yes, because it is right under eminent domain B. Yes, because the property is grandfathered C. No, because an exercise of police power does not require compensation D. No, because he should have improved the property when he bought it 4. Zoning ordinances and subdivision regulations, as examples of the enactment of police power, usually cover such matters as: A. baselines. B. set-back lines. C. deed restrictions. D. encumbrances.

18 Chapter 5 5. Concerning the Federal Fair Housing Law, which of the following is correct with respect to the definition of a minority? A. Any group or members of a group that can be identified by race, color, religion, sex, handicap, familial status, or national origin B. Any group or member of a group that can be identified by any other characteristic on the basis of which discrimination is prohibited by a federal, state, or local Fair Housing Law C. Has nothing to do with numbers D. All of the answers are correct. 6. The county tax assessor: A. determines the assessed value of each individually owned property in the county. B. sets the book value of individual properties. C. sets the tax rate. D. collects the taxes due on all properties in the county. 7. With the best of intentions, a salesperson advises an African American family to avoid an area where there have been incidents of bigotry. This constitutes: A. no violation of Fair Housing Law if the facts stated were true. B. no violation of law since the advice was given with good intentions. C. a violation in the form of blockbusting. D. a violation in the form of steering. 8. The Lead-Based Paint Hazard Reduction Act requires that the buyer be provided with certain information when purchasing a residential dwelling or a residential dwelling in which a component of that dwelling was built prior to Which of the following is correct regarding these disclosures? A. The disclosure must be made prior to closing. B. The disclosure must be made prior to showing of the property. C. The disclosure must be made within 10 days of the signing of a contract. D. The disclosure must be made prior to entering into a contract to purchase.

19 Chapter 5 9. A prospective purchaser, who is Caucasian, asks a salesperson what percentage of the families in a particular area is African American. The salesperson s best course of action would be: A. to refuse to answer the question. B. to advise the purchaser that the question is improper. C. to refer the purchaser to an appropriate agency such as the public schools administration. D. to assure the purchaser there is no reason to be concerned since the percentage is small. 10. The City of Longview has approved a budget of $12,500,000 that is to be funded by ad valorem tax. The assessment roll shows that all nonexempt property has a fair market value of $950,000,000. If the assessment rate is 40%, what tax rate will each property owner be required to pay? A. $.33 per dollar B. $.33 per one hundred dollars C. $3.30 per one hundred dollars D. $4.40 per one thousand dollars 11. The Mrs. Murphy Exemption to the Fair Housing Law of 1968 requires which of the following? A. That no real estate broker is used B. That no discriminatory advertising is used C. That the owner rents units in a two-to-four family building or rooming house D. All of the answers are correct. 12. A buyer whose number is listed in the Do-Not-Call Registry has called a broker requesting information on a listing. For what period of time may the broker continue to call the buyer with information on other properties in which the broker feels the buyer may have an interest? A. Never B. Within 3 months of the initial inquiry C. Within 18 months of the inquiry D. An unlimited time unless the buyer requests no further calls from the company

20 Chapter Beth Stanfield inherited a lot on Central Avenue in the City of Belview. The lot is zoned for single family, detached residential use. In trying to sell the property, Beth has been unable to find a buyer because of the excessively heavy traffic on Central Avenue due to its widening two years ago from two lanes to six lanes. Beth has petitioned the Belview zoning board of appeals for permission to construct a duplex on the lot. Her request, if granted, would constitute: A. a nonconforming use. B. a variance. C. a grandfathered property. D. spot zoning. 14. If a house is assessed at $9,000 and assessment is 30% of market value, the county assessor would have judged its market value to be: A. $27,000. B. $27,500. C. $28,000. D. $30, Of the following statements, which is correct with respect to zoning ordinances? A. Planning commissions and master plans generally are not concerned with aesthetic value. B. Zoning regulations supercede deed restrictions and homeowner s bylaws. C. Private restrictions and zoning ordinances may both be effective with respect to the same land at the same time, with private restrictions imposing additional limitations on the use. D. Zoning ordinances have retroactive application as do private restrictions. 16. You are a licensed salesperson working with an out of town Arab client who has identified a home he wants to see in a neighborhood that you know is predominately Jewish. You should: A. tactfully suggest an alternative. B. show the property. C. explain that the neighbors are predominately Jewish. D. refuse to show the property.

21 Chapter Which of the following practices would not violate antitrust laws? A. Refusal of real estate boards to admit qualified members B. Any brokers going into collusion to set property prices C. Establishing a company policy for determining commissions to be charged D. Two or more brokers going into collusion to set commission rates 18. A client asks a licensed salesperson to find a tenant who will lease his/her furnished home for a four-month period. To which of the following might your refusal to rent NOT constitute a violation of Fair Housing Laws? A. An Asian family B. Four university students C. Two single women, with a child D. A blind man 19. Which of the following statements is true concerning the CAN-SPAM Act? A. The use of a misleading subject line is permissible as long as the transmission is identified as an ad. B. The sender has 30 days to honor an opt-out request. C. The Act prevents the sending of commercial s unless the sender received prior written permission. D. Every commercial must contain an opt-out provision. 20. Charlie is a Laotian immigrant. He has subdivided his lot and built a new house next door to his own house. In listing this new house, he asks the salesperson to look for a Laotian purchaser. Which of the following statements is true? A. The salesperson might advertise Laotian preferred. B. The listing isn t illegal since Charlie has only expressed a preference, not a requirement. C. The listing salesperson should refer the listing to a Laotian salesperson. D. The listing should not be taken under these conditions.

22 Chapter 6 AGENCY - SUPPLEMENTAL QUIZ 1. The law will act to end a listing agreement: A. if the owner declares bankruptcy. B. by supervening illegality. C. if the home is destroyed by fire. D. All of the other answers are correct. 2. A broker whose negligence in preparing a sales contract allows the purchaser to void the agreement breaches his/her duty of: A. personal performance. B. obedience. C. accountability. D. due care. 3. The unauthorized withdrawal of any portion of an earnest deposit from a broker s trust account before the sale is consummated or otherwise terminated, regardless of the intended use, is considered: A. constructive fraud. B. commingling. C. negligent misrepresentation. D. None of the other answers are correct. 4. According to Georgia law, a listing agent must voluntarily disclose to a buyer customer: A. the fact that a suicide has taken place on the property. B. the fact that a previous occupant had AIDS. C. latent defects. D. patent defects. 5. Mario is showing a buyer client houses in a residential subdivision. He knows that there is a parcel of vacant land 3,500 feet to the north of these homes where an owner recently received permission to operate a waste disposal facility. Must Mario disclose this fact to a prospective purchaser? A. No, because the disposal site is not close enough to be of concern B. No, because the site has not yet been developed C. Yes, this would be considered a ministerial duty D. Yes, because Mario owes absolute duty to the buyer

23 Chapter 6 6. According to the law of agency, a fiduciary relationship exists between the: A. listing broker and seller. B. selling broker and seller. C. selling broker and listing broker. D. salesperson and buyer. 7. Which of the following statements concerning a power of attorney is INCORRECT? A. The document must always be recorded. B. When used in regard to real estate transactions, the document must always be in writing. C. Authorization to act for the principal is granted to attorney-in-fact. D. The formality with which the document must be executed is governed by the equal dignities rule. 8. Salesperson Andrews receives an offer to purchase that is accompanied by a $2,000 earnest money deposit in the form of a personal note. Which of the following is true? A. Andrews has breached his/her agent s duty to the seller. B. The offer should indicate the deposit is in the form of a note. C. Andrews should return the note and ask the purchaser to give him/ her a check for the same amount. D. The resulting contract will be voidable at the seller s option. 9. A cooperating broker (subagent) finds a buyer for a home listed with ABC Realty Company, Inc. The selling broker represents: A. the seller. B. the buyer. C. both the buyer and the seller. D. neither the buyer nor the seller. 10. Under BRRETA, a listing agent is required to present to the seller: A. all written offers. B. all qualified offers. C. all signed offers. D. all offers.

24 Chapter Agent Norris is working with a buyer prospect who chooses to be a customer. The prospect wants to see a listing on Pine Street, but the listing company has indicated it will not offer subagency. A. Norris can show the house as a transaction broker. B. The house can be shown only by buyer brokers. C. The listing company had no right to refuse subagency. D. A dual agency will result if Norris buyer decides to offer on the Pine Street house. 12. A broker engaged by a seller who performs such acts as locating lenders, inspectors, attorneys, surveyors, and schools for the purchaser would be performing: A. buyer agent duties. B. transactional broker responsibilities. C. ministerial acts. D. contractual obligations on behalf of the seller. 13. Prior to entering into brokerage engagement relationships, a broker must: A. advise the prospective client of the types of brokerage relationships available through the broker. B. advise the prospective client of any other brokerage relationships held by the broker that would conflict with any interests of the prospective client actually known to the broker. C. advise the prospective client as to the broker s compensation and whether the broker will share such compensation with other brokers who may represent their parties to the transaction. D. All of the other answers are correct. 14. In a typical listing contract, the relationship established between the property owner and the listing broker is that of: A. principal and agent B. agent and subagent C. broker and customer D. All of the other answers are correct. 15. The listing contract is a contract between: A. seller and multiple listing system. B. seller and listing salesperson. C. seller and broker. D. broker and listing salesperson.

25 Chapter The listing salesperson can sign the listing contract on behalf of his/ her company if: A. he/she is the only person available. B. the broker has verbally approved of this action. C. the seller is satisfied to have it done this way. D. the salesperson has written authorization from the broker. 17. When a prospective purchaser comes to an open house being held by the listing salesperson, the prospect should be treated as: A. a customer. B. a client. C. an agent. D. a subagent. 18. A broker might choose to have salespeople in an employer/employee relationship because: A. the broker would have less bookkeeping to do. B. the broker would have more control over the agent s activities. C. the broker s contribution to FICA would be smaller. D. the cost of unemployment insurance and workman s compensation insurance would be lower. 19. Which of the following statements about the independent contractor status is FALSE? A. Most real estate sales people are independent contractors. B. A broker can control the results he/she expects from independent contractors, but not the method of obtaining the results. C. An independent contractor is literally in business for him/herself. D. Nothing is withheld from the commission checks for independent contractors except income taxes. 20. You have agreed with your broker to split commissions 60% to you, 40% to the broker. Your listing was just sold by another company for $139,000. Your broker has agreed to pay the selling broker 50% of any commission. If the commission on this sale was 6%, what was your share? A. $8, B. $2, C. $1, D. $4,170.00

26 Chapter 8 CONTRACTS - SUPPLEMENTAL QUIZ 1. If a purchaser breaches a valid and enforceable sales contract, the seller may at his/her option: A. declare the contract forfeited and retain as liquidated damages any payments received from the buyer. B. rescind the contract and return any payments received from the buyer. C. sue for specific performance. D. Any of the other answers are correct. 2. All of the following are examples of how a contract may be discharged EXCEPT: A. assignment by the purchaser. B. unilateral rescission by a defrauded purchaser. C. novation. D. supervening illegality. 3. Frances, an elderly lady, entered into a contract to sell her home when her unscrupulous nephew Bruce took unfair advantage of his relationship with her. Frances: A. will have to sell if the purchaser is an innocent third party. B. may rescind the contract if she chooses. C. will not have to sell because the contract is void due to fraud. D. will have to sell but has legal recourse against Bruce. 4. A novation can be any of the following EXCEPT: A. substitution of a new contract for an existing contract. B. substitution of one party for another. C. substitution of a new obligation to discharge a former obligation. D. substitution of a new agreement by one party against the wishes of the other party. 5. An executory contract is one in which: A. something remains to be done by one or both parties. B. the contract has been properly signed. C. contract time limit has expired. D. one of the parties has died before closing and the decedent s executor must act on behalf of the deceased.

27 Chapter 8 6. An implied contract is one in which: A. the parties express their intent orally. B. the parties express their intent in writing. C. the parties agreement is shown by their acts and conduct. D. one party makes a promise in order to induce another party to act. 7. Which of the following will normally control the contents of a deed? A. The listing agreement B. The contract for sale C. The verbal representations of seller and broker D. A properly executed power of attorney by the seller 8. The Statute of Limitations refers to: A. rights. B. time. C. terminology. D. legal description. 9. A broker has listed a property for a client who lives in another state. When an offer is received from a cooperating agent, it is FAXED to the owner. He then FAXES back a signed acceptance to his agent who in turn delivers it to the buyer s agent. When did it become a binding agreement? A. When the seller signed it B. When it was received by the listing agent C. When it was received by the buyer s agent D. Never because FAXED signatures are not legal 10. Broker Mike Stevens tells Andy Malcolm that certain land is zoned for industrial use. Although Stevens thought he was correct, the land was actually zoned for residential use. Malcolm relied on Stevens representation and signed a contract to purchase the land. A. Malcolm may rescind the contract. B. The contract is void because of fraud. C. The contract lacks mutual assent. D. The contract is valid and enforceable because Stevens made an honest mistake.

28 Chapter When there is a conflict between the wording of portions of a sales contract, which of the following takes precedence over all other wording? A. Typewritten B. Printed C. Standard D. Handwritten 12. Which of the following parties receives equitable title? A. Optionee B. Vendee C. Lessee D. Mortgagee 13. A land contract is: A. a financing arrangement where the purchaser pays regular installments of principal and interest to the seller while the seller retains title. B. a method that is used exclusively for the purchase of vacant land. C. illegal. D. unrecordable. 14. An enforceable sales contract must include all but which of the following? A. Reality of consent B. An earnest money deposit C. Be in writing D. Mutual assent 15. Mary Jo Davis gives Steve Calvin an option to buy her farm within the next year for $500,000. Calvin agrees to pay $10,000 for the option. Regarding this transaction, which of the following is correct? A. If Calvin does not exercise his option, Davis must return the option money. B. Davis is the optionee. C. Calvin does not have the right to use the property during the option year. D. If Calvin exercises his option, the $10,000 will automatically be applied to the purchase price.

29 Chapter If a seller deposits the deed with an escrow agent but the seller dies before it is delivered to the purchaser, the transfer of title becomes effective on the date the deed was deposited into escrow. This procedure is allowed by: A. the parties reality of consent. B. the law of contracts. C. the parol evidence rule. D. the doctrine of relation back. 17. In order to enter into a contract to buy real estate, a corporate official who signs the agreement must obtain the authority from: A. the President of the corporation. B. a majority vote of the stockholders. C. a corporate resolution passed by the Board of Directors. D. the Chairman of the Board of Directors. 18. Seller Evans, having signed a contract for the sale of her home, verbally promised the buyer that the living room would be freshly painted. When the buyer moved in, the buyer discovered that the room had not been painted as promised. Under these circumstances: A. the seller breached the sales contract. B. the buyer has no legal recourse. C. the seller must reimburse the buyer a reasonable amount for failure to paint the room. D. the buyer has a legal basis for a suit for damages. 19. Before being notified of the seller s acceptance, the prospective purchaser may: A. withdraw the offer and receive a full refund of the earnest money deposit. B. not withdraw the offer until the seller has had a reasonable time to consider it. C. withdraw the offer and receive a full refund of the earnest money deposit unless the offer had a time limit that has not yet expired. D. withdraw the offer but forfeit the earnest money.

30 Chapter The provision in a sales contract that obligates the seller to repair a leaking basement one year after closing is called: A. a liquidated damages clause. B. time is of the essence. C. a survival clause. D. relation back clause.

31 Chapter 10 LEASES - SUPPLEMENTAL QUIZ 1. Which of the following is INCORRECT about leasehold improvements? A. Leasehold improvements are made by the tenant. B. Leasehold improvements belong to the landlord at the end of the lease, unless agreed otherwise by the parties. C. Leasehold improvements are made by the landlord, because of one s implied duty to keep the premises habitable. D. Leasehold improvements must be specifically authorized in the lease or otherwise agreed to by the parties. 2. Which of the following may be used to guard the landlord against the hazards of inflation? A. Index lease B. Escalator lease C. Reappraisal lease D. All of the other answers are correct. 3. 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. 4. A lease may be terminated by all of the following EXCEPT: A. condemnation. B. assignment. C. eviction. D. merger. 5. If a seller allows a prospective purchaser to take possession before closing the sale, problems of regaining possession can be minimized if the sale does not close by having the parties sign: A. an occupancy agreement. B. a ground lease. C. a sale-leaseback. D. a reappraisal lease.

32 Chapter A one-year lease for a single family home requires: A. only a street address and apartment number for a legal description. B. a physical description of the unit. C. pictures of the property attached to the lease. D. a complete legal description of the premises. 7. An implied covenant in a lease, which guarantees the tenant that possession will not be disturbed because a defective title allows someone else to claim an interest in the property superior to that of the landlord, is called: A. a protective covenant. B. an implied warranty of habitability. C. a covenant of quiet enjoyment. D. restrictive covenant. 8. Customarily a lease specifies rent is due in advance of using the premises. If the lease is silent as to when the rent must be paid, then: A. it is due at the end of the rental term. B. the landlord can decide. C. it is automatically due monthly. D. the lease is void, because it lacks consideration. 9. A first right of refusal clause in a lease gives the tenant: A. an option to buy the property in the future. B. an option to renew the lease. C. the first opportunity to buy the property if it is offered for sale at a price offered by a bona fide purchaser. D. the right to buy the property at a price refused by a bona fide purchaser. 10. With 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 other answers are correct.

33 Chapter A lease contract is similar to a deed in all of the following respects EXCEPT: A. it conveys possession of the property. B. it is of indefinite duration. C. it requires a full legal description. D. it conveys the right of quiet enjoyment. 12. Although desirable, it is not necessary that a lease be in writing if it is to be: A. for commercial property. B. for a period of one year or less. C. for a religious order leasing church space. D. a ground lease. 13. A Salesperson with XYZ Realty has arranged a lease that has now expired. The tenant is demanding a return of the security deposit and the landlord is refusing to return it. The salesperson should: A. explain to the tenant that the landlord is probably within his/her rights. B. explain to the landlord that the tenant is entitled to the money. C. make an inspection to determine which party is correct. D. refer the matter to the broker. 14. The typical form lease contract is probably inappropriate for arranging: A. a residential tenancy for years. B. a month-to-month lease on an apartment. C. a condominium lease. D. a commercial lease. 15. Which of the following statements regarding a lease with option to purchase is true? A. The option does not obligate the tenant to buy the property. B. Exercising the option does not obligate the landlord to sell. C. The sale price will be negotiated when the option is exercised. D. If the option is exercised, the rent paid will apply to the purchase.

34 Chapter Which of the following statements about the security deposit is true? A. A security deposit is essential to a lease. B. Interest earned on a security deposit always accrues to the benefit of the tenant. C. A licensed salesperson should turn the security deposit over to the broker for deposit in the trust account. D. The security deposit is returned to the tenant, in full, at the end of the lease. 17. After leasing an apartment to a university student, a landlord is dismayed to discover that the student is only seventeen years old. Can he consider the contract void and eject the tenant? A. Yes, because a contract signed by a minor is voidable B. Yes, because the landlord is entitled to have a tenant who is legally responsible for paying rent C. No, because the landlord never asked about the tenant s age D. No, the contract is voidable only by the tenant 18. A purchaser is going to occupy a home prior to closing. The move-in agreement should contain all of the following EXCEPT: A. alternatives to be provided if the sale fails to close. B. the provision that a temporary landlord/tenant relationship is established. C. a provision that the seller s consent must be obtained for any alterations. D. the amount of compensation seller is to receive. 19. A tenant, who has a one year apartment lease starting on January 1, must: A. give sixty days notice when he/she plans to vacate. B. vacate the premises by December 31. C. vacate the premises within thirty days after expiration of lease. D. give ten days notice before vacating. 20. To ensure 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 other answers are correct.

35 Chapter 12 VALUE - SUPPLEMENTAL QUIZ 1. All of the following might contribute to the economic obsolescence of a property EXCEPT: A. zoning changes. B. highway reroutings. C. poor architectural design. D. new shopping center. 2. What is the first step in the appraisal process? A. Determine the data needed B. Define the appraisal problem C. Collect data D. Analyze the data 3. The elements of value do not include: A. cost and age. B. utility and demand. C. scarcity and transferability. D. Any of the other answers are correct. 4. Which of the following is the most complete type of appraisal report? A. Short form report B. Letter of opinion C. Narrative report D. Check list report 5. Appreciation in unit value created by joining smaller parcels into one large single parcel is called: A. progression. B. plottage increment. C. assemblage. D. appreciation.

36 Chapter Which of the following would NOT be important in a market data approach to value? A. Difference in sales dates B. Difference in age C. Different original costs D. Difference in locations 7. An example of an item of depreciation that would NOT generally be incurable is: A. a poor floor plan. B. old fashioned fixtures. C. a room addition. D. change from wood siding to stucco. 8. An agent is listing a home that has been over improved for the neighborhood. The principal of value that the agent may cite to persuade the seller his home is NOT worth substantially more than his neighbors is: A. regression. B. progression. C. anticipation. D. competition. 9. The separate valuation of land and buildings is necessary in which method of estimating value? A. Sales comparison approach B. Reproduction cost approach C. Straight line approach D. Income approach 10. The market price as related to the market value of a property is: A. never the same. B. always the same. C. possibly the same. D. None of the other answers are correct.

37 Chapter Which of the following is not considered obsolescence? A. Outdated fixtures B. Declining neighborhood C. Wear and tear D. Over improvement 12. Which of the following components would not represent market value in an arm s length transaction? A. A seller who provides financing B. A local buyer born and raised in the community C. A property that sold after 100 days on the market when the average number of days is approximately 100 to 120 days in that community D. an elderly couple wanting to downsize 13. Which would NOT cause functional obsolescence? A. Inadequate heating and air-conditioning B. Eccentric and unorthodox design C. Super adequate improvements D. Proximity to noxious odors or nuisances 14. When employing the sales comparison approach, the appraiser will: A. make a positive adjustment to the comparable for a feature that the subject has but the comparable does not. B. make a positive adjustment to the subject for a feature that the comparable has but the subject does not. C. make a negative adjustment to the comparable for a feature that the subject has but the comparable does not. D. make a negative adjustment to the subject for a feature that the comparable has but the subject does not. 15. In distinguishing between curable and incurable depreciation, it would be correct to say that: A. curable depreciation is depreciation the owner cannot afford to correct. B. incurable depreciation is depreciation the owner can afford to correct. C. incurable depreciation costs more to correct than it adds to property value. D. BOTH curable depreciation is depreciation the owner cannot afford to correct AND incurable depreciation is depreciation the owner can afford to correct.

38 Chapter A property s actual age is 18 and the appraiser has determined the effective age to be 12. If the remaining economic life is 38, what is the percent depreciation? A. 32% B. 47% C. 24% D. 36% 17. A income producing property is valued at $2,000,000 with annual income of $400,000. What is the indicated GIM? A. 2.4 B. 5 C. 4 D A small apartment building produces monthly net income of $3,500. If the value is $350,000, what is the capitalization rate? A. 1% B. 10% C. 12% D. 6% 19. If a property has a value of $475,000 and a cap rate of 12%, what is the value with a cap rate of 8%? A. $712,500 B. $316,000 C. $3,160,000 D. $260, The ground floor of a home measures 38 by 48 ; the second floor has the same measurements; and, the basement is half that size. If the ground floor improvements are valued at $62 a square foot; the second floor improvements are valued at $48 a square foot; and, the basement area is valued at $21 a square foot, what is the value of the improvements? A. $239,654 B. $219,792 C. $209,987 D. $199,123