real estate exam part 2

The creation of an easement by prescription is similar to:

• adverse possession.

• unlawful detainer action.

• accretion.

• police power.

Mother Nature can cause a piece of land to grow in size.

This growth is called:

• erosion.

• adverse Possession.

• alienation.

• accretion.

To correct a mistake in a deed you would use what

document?

• Reformation deed.

• Gift deed.

• Fix-it deed.

• Sheriff’s deed.

Deeds executed by court appointed representatives include

all the following EXCEPT:

• Testator’s deed.

• Guardian’s deed.

• Executor’s deed.

• Administrator’s deed.

The Seller’s first mortgage loan balance is $175,000 and

has an annual interest rate of 7.25%. There is also a second

mortgage of $53,400 at 9%. If the lender uses a 360-day

financial calendar year and the closing is on April 16, what

is the total accrued interest owed?

• $728.99

• $680.30

• $766.83

• $777.49

Answer explanation

$175,000 x 7.25% =$12,687.50

$53,400 x 9%=. + $4,806.00

=$17,493.50

÷360

=$48.5930

x16 days

If the closing is to take place on April 22 and the taxes have

not been paid:

• Seller will be credited 253 days.

• Buyer will be credited 253 days.

• Buyer will be debited 112 days.

• Seller will be debited 112 days.

Answer explanation

31+28+31+22

Which of the following statements is true?

• Hazard insurance is usually paid in advance.

• Mortgage loan interest is usually paid in advance.

• Rent is usually paid in arrears.

• PMI is usually paid in arrears.

All of the following items are usually prepaid EXCEPT:

• a tenant’s rent.

• hazard insurance premiums.

• interest on a mortgage loan

• security deposits.

When a third party relies upon the principal’s representation

that a particular broker is his/her agent, even though the

broker is unaware of the fact, the principal’s actions create

a/an:

• agency by ratification.

• ostensible agency.

• buyer agency.

• estoppal agency.

Acting as a dual agent without the consent of all parties is a

breach of a broker’s duty of:

• loyalty.

• personal performance.

• due care.

• accountability.