Real Estate National Exam Prep 1

Which of the following is a lien on real estate?

• Recorded easement

• Recorded mortgage

• Encroachment

• Deed restriction

A sales contract was signed by a minor. Which term describes this contract?

• Voidable

• Breached

• Discharged

• Void

A real estate professional receives a check for earnest money from a buyer & deposits the money in the real estate professional's personal interest-bearing checking account over the weekend. This action exposes the real estate professional to a charge of

• commingling.

• novation.

• subrogation.

• accretion.

A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years & a final payment of $24,095. This is what type of loan?

• Wraparound

• Accelerated

• Balloon

• Variable

If a borrower computed the interest charge for the previous month on a $260,000 loan balance at $1,300, what is the borrower's interest rate to the nearest half percent?

• 6%

• 6½%

• 5%

• 5½%

A real estate professional signs a contract with a buyer. Under the contract, the real estate professional agrees to help the buyer find a suitable property & to represent the buyer in negotiations with the seller. The buyer may not sign an agreement with any other real estate professional. What kind of agreement has this real estate professional signed?

• Exclusive buyer listing agreement

• Exclusive buyer representation agreement

• Open buyer agency agreement

• Option contract

A grantor conveys property by delivering a deed. The deed contains five covenants. This is MOST likely

• a general warranty deed.

• a quitclaim deed.

• a bargain & sale deed.

• a deed in trust.

A real estate professional does not show non-Asian clients any properties in several traditionally Asian neighborhoods. The real estate professional bases this practice on the need to preserve the valuable cultural integrity of Asian immigrant communities. Which statement is TRUE regarding the real estate professional's policy?

• The real estate professional's policy is steering & violates federal & state fair housing laws regardless of motivation.

• Because the real estate professional is not attempting to restrict the rights of any single minority group, the practice does not constitute steering.

• The real estate professional's policy is steering, but it does not violate the fair housing laws because cultural preservation is the motive, not exclusion or discrimination.

• The real estate professional's policy has the effect, but not the intent, of steering.

A women grants a life estate to her son-in-law & stipulates that, upon his death, the title to the property will pass to her grandson. The grandson's interest is known as

• a remainder.

• a reversion.

• an estate at sufferance.

• an estate for years.

A primary benefit of property held in joint tenancy is

• ownership by a maximum of two people.

• the fractional interest of the owners, which can be different.

• the fact that additional owners may be added later.

• the right of survivorship.