Real Estate Quiz part 3

An actual agency that arises by deduction or inferences from other facts and circumstances, including the words and conduct of the parties, best describes which of the following?

• Special agency

• Implied agency/ostensible

• General agency

• Universal agency

Answer explanation

Implied agency/ostensible is the correct choice because it arises from deduction or inferences from the parties' words and conduct.

Title held by a husband and wife may include all of the following forms of ownership EXCEPT

• severalty.

• tenancy by the entireties.

• joint tenancy.

• tenancy in common.

Answer explanation

Title held by a husband and wife may include all forms of ownership except severalty, which is ownership by a single individual.

How many square feet are in three acres?

• 43,560 sq. ft.

• 86,040 sq. ft.

• 130,680 sq. ft.

• 135,890 sq. ft.

Answer explanation

Three acres is equal to 130,680 square feet. To convert acres to square feet, multiply by 43,560 (1 acre = 43,560 sq. ft.). Therefore, 3 acres x 43,560 sq. ft. = 130,680 sq. ft.

In order to determine exactly what portion of a mortgage loan the VA will guarantee on behalf of a qualified veteran, the borrower must apply for a

• certificate of reasonable value.

• release of liability.

• statement of entitlement.

• certificate of eligibility.

Answer explanation

In order to determine exactly what portion of a mortgage loan the VA will guarantee on behalf of a qualified veteran, the borrower must apply for a certificate of eligibility.

The failure to perform provisions of a contract without a legal excuse is known as a(n):

• termination of contract

• exclusions

• option

• breach of contract

Answer explanation

The failure to perform provisions of a contract without a legal excuse is known as a breach of contract.

Which of the following is an example of a less-than-freehold estate?

• Fee simple estate

• Life estate

• Estate for years

• Estate in remainder

Answer explanation

The correct choice is 'Estate for years' because it is an example of a less-than-freehold estate, unlike fee simple estate or life estate.

A person owned a 4-plex and lived in one of the units. Which of the following would be allowed?

• Advertising "only Protestants apply," if the property is being sold as a "for sale by owner."

• Refusing to rent to a student from a different national origin.

• Advertising on the sign in the yard that only certain nationalities need apply if the property is being sold as a "for sale by owner."

• Refusing to rent to someone based on race.

Answer explanation

The correct choice is refusing to rent to a student from a different national origin, as it is allowed for the owner to choose tenants based on national origin in this scenario.

Which of the following is true of external obsolescence?

• It is generally curable because the owner of the subject property can generally invest less money to fix it than he/she gains in property value by fixing it.

• It is generally incurable because it results from factors that the owner of the subject property cannot control.

• It can be caused by a deteriorating foundation under the subject property.

• It can be caused by a poor floor plan in the subject property.

Answer explanation

It is generally incurable because it results from factors that the owner of the subject property cannot control.

The finance fee charged by the lender to make the loan is a(n)

• prepayment penalty.

• advance interest payment.

• loan origination fee.

• stamp tax.

Answer explanation

The finance fee charged by the lender to make the loan is referred to as a loan origination fee.

The amount of a broker's commission usually is

Answer explanation

Based on industry standards, the amount of a broker's commission is typically a percentage of the total transaction value.