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WorksheetsReal Estate School
Total questions: 199
Worksheet time: 26hrs 50mins
Which of the following best describes a parcel of land?
The surface of the earth includes all things permanently attached and the control of all minerals and substances beneath
The surface of the earth extending down to the center and upward to infinity
The earth's surface clearly marked by certain boundaries
The surface of the earth extending down a reasonable distance and up into the air a reasonable distance
In determining whether an item is a fixture, which of the following would not be considered?
Method of attachment
Adaptation to the real estate
Value of the item
Legal interest of the annexing party
The characteristic that distinguishes personal property from real property is:
mobility
scarcity
durability
flexibility
When used in a deed or other real estate document, a legal description describes only the land because:
a bill of sale is used to convey title to the building and other improvements
artificial attachments, such as buildings, cannot be adequately surveyed
buildings and other improvements are considered to be part of the real estate
a street address is used to identify the buildings and improvements
An item that was personal property but has been attached to and become part of the real property is known as:
a trade fixture
an emblement
frutus industriales
a fixture
Crops planted and harvested each year are:
personal property
emblements
frutus industiales
all of the above
The most distinctive physical characteristic of land is:
homogeneity
immobility
situs
improvements
All of the following are real property except:
oil below the earth's surface
a concrete driveway
cut timber
air rights
The law of capture refers to the:
process of removing oil and gas from the land
government's rights of eminent domain
landowner's right to keep trade fixtures if not removed
responsibility of lateral support while removing solid minerals
The sum of all factors that affect value is called:
location
accession
situs
scarcity
Ownership of personal property is transferred by:
deed
chattel deed
bill of sale
sales agreement
A landowners rights to use water from a bordering stream or river is called:
Littoral rights
Rights of prior appropriation
Riparian rights
Correlative right
If Smith builds a fence on Jones' land by mistake, in good faith, and thinking the fence is on Smith's land, then:
Jones automatically acquires ownership of the fence by accession
Jones may sell and keep the proceeds
Jones may require Smith to remove the fence and/or pay for damages
both A and B
The fact that an acre of land in a rural area cannot fulfill as many needs as an acre of urban land describes the economic characteristic of:
scarcity
situs
improvements
location
All of the following are true about a trade fixture except:
it is personal property
it is chattel real
it may be removed only after the lease expires
it belongs to the property owner if not removed in a timely manner
Dawson sold his 500 acre farm to Harris, but reserved the right to drill for oil. Later when Dawson arrives with oil drilling equipment, he is denied the right of access to the land. Which party has correctly interpreted the agreement?
Dawson, because he has an implied right of entry
Harris, because the agreement was silent as to the right of entry
Dawson, but he must pay Harris a reasonable fee for the right of access and reimburse him for any damages caused by the drilling operation
Harris, but he may be liable if his denial was unreasonable
A township contains how many square miles?
6
16
640
36
Which of the following statement about air rights is true?
Air rights can be leased but not sold unless the entire parcel is being sold
The owner can sell the air rights and still retain the surface and subsurface rights
Government controls such as zoning have no effect on air rights
Structures are rarely erected on air lots
A custom-made storm window would most likely be considered a fixture because of:
its adaptation to the building to which it is attached
the method of attachment
the annexing party's intent to make it permanent
the annexing party's interest in the real property
The method of land description which identifies a parcel by specifying its boundary lines along with the terminal points and the bearing of each side is known as:
lot, block, and tract
recorded plat
government survey
metes and bounds
Which of the following is not an acceptable method of legally describing a parcel of real estate?
Street addresses, county, and state
Metes and bounds
Rectangular survey
Recorded plats
A base point from which height or depth can be measured to describe air rights or subsurface rights is a:
topographic
bench mark
point of beginning
datum
Approximately how many acres are there in a farm that measures 470 feet along the road and 556 feet in depth?
261
6
50
320
If Mr. Shern's lot has 65 front feet and contains 7,150 square feet, how deep is it?
110 ft
100 ft
65 ft
464,750 ft
Real estate investors are not generally interested in how long buildings will last, but in how long they will be profitable. This characteristic is called:
life expectancy
profit margin
net return
economic life
The government's right to make laws and regulations for the general welfare is known as:
eminent domain
police power
escheat
the bundle of rights
The city of Atlanta has condemned Nelson's land in order to extend its rapid transit services. This procedure is made possible because of the city's right of:
entry
escheat
eminent domain
police power
A private landowner has the right to:
reject a claim for taxes
repudiate a zoning ordinance
disinherit heirs
refuse to sell the property or otherwise prevent the city from taking it for use as a street
In order to be effective, a lien should be
recorded
published
renewed
delivered
The toal collection of rights that may be claimed by private ownership is best described as:
the fee simple system
an estate
freehold
the bundle of rights
In real estate law, the word fee is closest in meaning to:
possession
an estate of inheritance
a tax or assessment on land
a real estate commission
Which of the following is correct about an estate?
It can exist simultaneously with another estate in the same property
Upon the death of the owner, it either goes to the owner's heirs or to the state by escheat
The owner is always assured of possession
Its duration is either forever or for a lifetime
Bob gives an estate to Jim for the life of Sue. Which of the following is true?
Jim has an estate pur autre vie
Bob has possessory estate
Sue is the person in remainder
Sue has a reversionary interest
A right or claim of a creditor to have debt satisfied from the proceeds of the sale of the debtor's property in the event of default is:
an attachment
a judgement
a writ of execution
a lien
Except for property tax liens and in some cases mechanic's liens, priority of liens is determined by the:
amount of the debt
date of default
date of recording
court at the time of foreclosure
Jones, a life tenant, grants Smith an easement across Jones's land. Later Jones dies. The easement will:
go to Jones's heirs
terminate
remain Smith's
not be enforceable because a life tenant cannot grant an easement without committing waste
The Joneses have purchased an acre of land in Elite Acres subdivision and are aware of the fact that covenants might limit the ways in which they use their property. Which is true of private restrictions?
The covenants cannot restrict the type of architecture they choose for their home
There could be a restriction on selling the home within the first three years after it is constructed
If a covenant specifies one acre of land per dwelling but local zoning permits two houses per acre, they can build two
Covenants can be based on aesthetic considerations
Unauthorized intrusion of a building, improvement, or other attachment onto a neighboring land is:
an easement
an encroachment
a lien
an estate
Smith signs an agreement with Jones to use and possess Jones's land until May 1st. Their agreement creates:
a less-than-freehold estate for Jones
a periodic tenancy
an estate for years
a reversionary estate for Smith
All of the following can be characteristics of an easement except:
an easement creates an interest that may be protected from third party interference
an easement can be created by conveyance
an easement is an incorporeal right in the land of another
an easement may be revoked at will by the servient landowner
Telephone lines are examples of
an easement in gross
a legally valid encroachment
an easement appurtenant
a non-revocable license
The law allows a person furnishing labor or materials for he improvement of real property to file a mechanic's lien against the property so improved if he/she is not paid. Which of the following is correct concerning such liens?
A mechanic's lien takes priority over all other liens
A mechanic's lien is a general lien
A mechanic's lien filed by a subcontractor is ineffective against a property owner who has proof of having paid the general contractor
A mechanic's lien will expire if the claimant does not take the necessary steps to enforce it
All of the following can be acceptable methods of terminating an easement except:
abandonment of the easement by the owner of the dominant estate
the owner of the servient estate openly and continuously prevents the easement owner from exercising his/her right of use for a statutory period of time
express release to the owner of the servient estate by the owner of the dominant estate
revocation of the easement by the owner of the servient estate
Farmer Brown is tired of hard work. He is deeding 165 acres of his farm to his son and keeping only 5 acres and a house for his own use. He will need an easement across his son's land so that he can get to his own. How is the easement created
Through a reservation in the deed
By having the son sign a lease
By recording a new plat map and survey
Through an exception in the deed
Which of the following is INCORRECT concerning a conventional life estate?
The owner is called the life tenant
The owner does not have to die for the estate to end
Life estate always pass to the remainderman
A life estate may be sold, leased, or mortgaged
A "freehold estate" is defined as one that:
has a condition attached to it
includes an estate for years
is similar to a leasehold
will last indefinitely
A "homestead" might be defined as a family home. Some states have Homestead Laws which afford some protection for the home from seizure to pay debts of a deceased owner/breadwinner. These laws are designed to protect:
the mortgage lender
the community
the breadwinner
the bereaved family
Revocable permission granted to hunt on another's land is an example of:
an incorporeal easement
a license
an easement by prescription
an easement appurtenant
What do dower and curtesy rights have in common?
Legal life estate
Possessory estate
Leasehold estate
Remainder estate
Which of the following phrases would be most typical of a fee simple determinable estate?
"provided that"
"on the expressed condition"
"with the intention of"
"for so long as"
The right of survivorship is associated with:
tenancy in common and condominium ownership
tenancy by the entireties and joint tenancy
tenancy in common and joint tenancy
tenancy by the entireties and community property
A joint tenancy would be changed to a tenancy in common by:
one joint tenant giving his/her interest to the other
the death of one of three joint tenants
one of two joint tenants selling his/her interest to a third person
the death of one of two joint tenants
Which of the following may own property in severalty?
Husband and wife together
Corporation
A partnership
A father and son together
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
The ownership unities of time, title, interest, and possession are required in order to create:
an undivided interest in the property as a whole
separate ownership
concurrent ownership
the right of survivorship
A broker is asked by a husband and wife how they should take title to the home they are buying. The broker should:
recommend they consult an attorney
recommend they ask the lender
explain the difference between joint tenancy and tenancy in common so they can decide for themselves
ask them what they want in terms of liability and survivorship and then suggest the best method according to the laws of their particular state
Smith, Jones, and Black are joint tenants. Smith sells his interest to White. With regard to this conveyance:
Jones, Black, and White are now joint tenants
Jones, Black, and White are now tenants in common
White owns a one-third interest as a tenant in common with Jones and Black who still own one-third each as joint tenants
Smith cannot legally convey an interest without a partition suit terminating the co-ownership obligations
Harper, Murphy, and Jackson own an investment property as tenants in common. Because of a recent business disagreement, Jackson wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Jackson may seek an equitable distribution of the property by filing a:
lis pendens
partnership agreement
partition suit
declaration of severalty
The land on which a high-rise condominium stands is owned by:
a nonprofit corporation
the individual unit owners as tenants in common
a syndicate
a limited partnership
A deed in favor of James and Rosen with stated proportionate interests of one-third and two-third respectively, without the right of survivorship, creates:
a joint tenancy
tenancy in common
severalty ownership of the property
a general partnership
Laura occupies an apartment in a multiple unit building. Each month she pays the association an assessment of her share of the mortgage payment, property taxes, and a fee for building maintenance. The form of ownership that Laura shares with the other individual unit owners is called:
a condominium
time sharing
limited partnership
a cooperative
Which of the following is not compatible with joint tenancy?
Probate
Survivorship
Equality of rights
Rights of possession
Certain unities are necessary for the creation of a joint tenancy. They are:
possession and interest
place and time
time and survivorship
survivorship and possession
A form of condominium ownership especially desirable for properties in resort areas where each unit is sold to multiple buyers is called:
proprietary leasing
condominium cooperatives
time sharing
condominium syndicates
Which of the following tenancies refers to ownership?
In common
At will
At sufferance
For years
What is the one unity in a tenancy in common ownership?
Interest
Possession
Time
Title
Prior to John's marriage to Mary he owned forty acres of land. While they were married, John paid $85,000 for a new home and Mary inherited an apartment building valued at $220,000. If they live in a state that recognizes community property ownership, which of the following represents their community property?
Forty acres of land
Home
Apartment building
None of the above
A married woman and an unmarried man may not own real estate as:
tenants in common
joint tenants
tenants by the entireties
general partners
Phil, Tom, and Bill form a partnership to buy investment property. Their first purchase is a duplex. Phil and Tom invest $15,000 each. Bill agrees to accept all management responsibilities and liability for the partnership. What kind of partnership did they form?
General
Limited
Special
Trust
The owner of a cooperative apartment unit:
owns stock in a nonprofit corporation
holds fee simple title that may be sold, mortgaged, or leased
owns the unit in fee simple with an undivided interest in the common elements
holds title in partnership with the other unit owners
A creditor may seek satisfaction of a debt from the personal assets of each co-owner of a:
general partnership
limited partnership
cooperative
all of the above
Kristin has purchased a condominium apartment in Happy Gardens. Which of the following statements about Kristin's ownership rights is true?
She is entitled to the exclusive use of the lawn in front of her unit
She has no liability if another owner in her building is foreclosed
Her monthly mortgage payment includes principal, interest, taxes and hazard insurance
She can deduct the cost of swimming pool upkeep from her monthly maintenance fee if she does not swim
A cooperative owner is assured of the exclusive use of an individual unit for the life of the corporation through the use of a:
trust agreement
cooperative declaration
proprietary lease
partnership agreement
A form of ownership that involves one party holding title for the benefit of another who retains full control over the property is a:
real estate investment trust
land trust
syndicate
limited partnership
The Directors of a condominium owners' association are elected by:
the officers
the owners
the occupants
the management company
A deed made and delivered but not recorded is:
invalid between the grantor and grantee
valid between the grantor and grantee and has priority
valid between the grantor and grantee but not valid against recorded claims of a subsequent purchaser who records the deed without having actual notice of any unrecorded interests
invalid between the grantor and grantee but valid as to third parties with constructive notice
A deed is acknowledged by:
the grantor
a notary public
the grantee
any authorized public officer
A forged deed is:
voidable
unenforceable
void
valid if recorded
Smith buys land from Jones. Two months after delivery of the deed they decide to rescind the sale. Which of the following is required to place them in the same legal position they held before the sale?
Endorsement of the deed by Smith to Jones
Delivery of a new deed from Smith as grantor to Jones as grantee
Recorded acknowledgment of rescission
Death of either party
Ms. Jones dies leaving no will. She leaves real property valued at $75,000 and has no heirs. Her estate would:
be held in trust pending appearance of heirs
be distributed according to laws of succession
revert to the state government
revert to the United States government
The donation of real estate for public use is known as:
reverse condemnation
eminent domain
dedication
escheat
Involuntary alienation means:
ownership of an estate is transferred by operation of law, by natural causes, or by court action
ownership of an estate cannot be transferred without consent of owner
ownership of an estate is transferred by a deed
ownership of an estate belongs to someone from another country
Pursuant to a valid contract, Smith agrees to convey Barrenacre to Jones. Smith prepares and signs a warranty deed and delivers it to his attorney in anticipation of closing. Smith dies before the closing takes place. Which of the following is correct?
There has been constructive delivery of a valid deed
The deed is not valid after Smith's death
The attorney is acting as escrow agent in receiving the deed; therefore delivery to Jones is implied
Smith drew up a deed. Jones, by contract, signified acceptance; therefore, the deed will convey Barrenancre
Voluntary alienation can be accomplished by:
contract for sale and warranty deed
transfer of title by descent
court action
execution sale and sheriff's deed
All of the following forms of deeds contain some covenants or warranties either expressed or implied except:
general warranty deed
quit claim deed
special warranty deed
grant deed
Ms. Smith, who is in good health, makes a will leaving her real property to Mr. Jones. Under such circumstances, all of the following are true statements except:
Jones has no interest in Smith's property despite being a devisee
Smith's will must be probated after her death in order to pass title to Jones
Smith can convey to a third party all the interest she has in the property despite the will
Smith is Jones heir
Ms. Smith properly executed a power-of-attorney authorizing Mr. Jones to sign a deed for her, pursuant to the closing of a sales contract. Unknown to Mr. Jones or to the purchaser at the time, Ms. Smith died the night before Mr. Jones signed the deed. Under these circumstances:
the conveyance is probably valid
the conveyance is not valid
a power-of-attorney lasts until revoked by will of the grantor
power-of-attorney is effective for 60 days after the lifetime of the person granting such authority
Involuntary methods of conveying property include all of the following except:
escheat
condemnation
quit claim
adverse possession
Under which of the following circumstances would title be transferred by descent?
Testator has living heirs
Voluntary alienation
Intestate succession
According to last will and testament
Alienation expresses a meaning most completely opposite to:
foreclosure of mortgage
transfer of property
acquisition of property
action by the grantor
With the permission of Jones, Smith occupied Jones' property for more than ten years. Smith made improvements, used the land exclusively and paid taxes on it. Now, Jones wants Smith to move.
Jones must pay Smith for the improvements and taxes
Smith probably has title to the property
Smith will have to go
While Jones still retains legal title. Jones must allow Smith a continuing possessory interest
A properly executed and delivered quit claim deed will always convey:
title to the property
all the grantor's rights and title to the property
any after acquired interest in the property
any warranty that has already been transferred
The creation of an easement by prescription is similar to:
adverse possession
unlawful detainer action
accretion
police power
All of the following are legal requirements for making a valid will in most states except:
legal age
sound mind and testator's signature
at least $1000 worth of property to dispose
presence of witnesses and their signatures
A valid deed must contain:
signature of the grantor
signature of the grantee
habendum clause
an acknowledgment
Mother Nature can cause a piece of land to grow in size. This growth is called:
erosion
adverse possession
alienation
accretion
Brenda and Janet own a piece of property as joint tenants. When they cannot agree on selling the property, what lawsuit must Brenda file to receive her share?
Foreclosure
Quiet title
Partition
Condemnation
A person homesteading in the Indian territories received ownership of the land by means of what document?
Treaty
Land grant
Quit claim deed
Patent
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:
Guardian's deed
Testator's Deed
Executor's deed
Administrator's deed
The Federal Lead-Based Paint Act requires the owners of property with improvements built prior to 1978 to do all of the following except:
disclose any known lead-based paint
give buyers copies of any reports dealing with the presence of lead-based paint
give buyers a federally approved lead-based paint pamphlet
remove all lead-based paint from the property
Which of the following statements regarding building permits is true?
If a lot owner is building his house, he does not need a building permit
The demolition of a building does not require a permit
A building permit must be acquired before new construction is completed
Before a new building can be occupied, one must have a certificate of occupancy
A white family is looking at homes and happens to notice some black children playing in a nearby park. They ask you what percentage of the people in the neighborhood are black. Your best response might be:
that is something we never discuss
there are not enough to matter
I think it is around ten percent
the local public school system could probably give you that information
The law requiring business locations to reserve a certain number of convenient parking spaces for the handicapped is:
the Federal Fair Housing law
local zoning ordinances
state health regulations
the Americans with Disabilities Act
Which of the following would provide the most desirable buffer zone between a single family residential community and an industrial land use zone?
a rapid transit rail
a six-lane thoroughfare
a well-landscaped public park
a government jurisdiction boundary line
The Fair Housing Law of 1968 does which of the following?
Builds equal housing for all people
Guarantees separate but equal housing for everyone in the United States
Provides fair housing opportunity for everyone in the United States
Guarantees elimination of prejudices in the United States
In developing a master plan for a community, all of the following might be "land use districts" except:
industrial
multi-family
educational
conservation
In making a listing presentation, the salesperson is advised by the owner that the property is not to be shown to minorities. The licensee should:
persuade the seller that no minorities are likely to call
advise the seller that marketing in this fashion would be a violation of law
take the listing and do as the seller requests
take the listing and discourage minorities from viewing the property if asked
Recent changes in Fair Housing Laws add protection for people who are discriminated against because of:
age or marital status
handicap or familial status
religion or children
country of origin or handicap
Ad valorem taxes are:
levied equally against all property owners
based on the value of property
determined by the benifit of services received
paid only upon property transfer
Floor area ratios are used:
to determine building density
by tax assessors to estimate value
to estimate the amount of fire insurance needed
appraised value
A licensee is acting as a rental agent for a broker who has a contract with the owner to manage an apartment complex. Which of the following would represent an illegal basis for refusing to rent an apartment?
the prospect has a poor credit rating
the prospect has a two-year old child
the prospect has pets
the prospect has negative references from previous landlords
The Interstate Land Sales Full Disclosure Act requires:
a 7 day cooling off period after receipt of the report
a 10 day cooling off period after receipt of the report
a 14 day cooling off period after receipt of the report
a 30 day cooling off period after receipt of the report
A special assessment is:
a reevaluation of a property's value made upon request from an arbitration board
a tax based upon benefit received
a tax levied equally against each property owner in the city or county
a tax levied only if ad valorem tax is insufficient to fund the proposed budget
Zoning designed to control population growth in a particular are is called:
directive zoning
incentive zoning
aesthetic zoning
bulk zoning
A salesperson might be in violation of Fair Housing Laws in all of the following circumstances except:
when asked to show property to a minority family, the salesperson refers them to another salesperson of their race
when asked to list a house belonging to a minority owner, the sales person reuses on the grounds that it is outside of the area with which he/she is familiar
the salesperson tells a minority prospect that a certain property will require a twenty percent down payment when in fact it can be had for ten percent down
the sales person fails to use his/her best efforts to close the sale of a minority purchaser
Which of the following permits land use because zoning is not retroactive?
variance
spot zoning
nonconforming use
bulk zoning
When a licensee is making a listing presentation and the seller is questioning the rate of commission he wants to charge, federal Anti-Trust law indicates that the best reply would be:
"It's the going rate in this city"
"This is my company's policy"
"Our Board of REALTORS recommends this rate"
"Other brokers won't cooperate with anyone who charges less"
If deed restrictions prohibit a use permitted by zoning, then:
zoning controls
the deed restrictions control
neither will prevail until adjusted
the nature of the use is alwas the controlling factor
The tax rate of 34.7 mills is equivalent to:
$34.7000 per $100 of assessed value
$00.3470 per $100 of assessed value
$03.4700 per $100 of assessed value
$00.0347 per $100 of assessed value
A home having a market value of $230,000 is assessed at 30% of such value. Of the total general real estate taxes on the property, the school tax represents $4.70 per $100 of assessed value. What is the dollar amount allotted school taxes?
$320.43
$6900.00
$609.00
$3243.00
A married couple filing a joint tax return may be exempt from paying capital gains on the sale of their home under what conditions?
They have lived in and owned the homes as their primary residence for any 2 of the last 5 years and the amount of the gain does not exceed $250,000
They are over the age 55 and have not previously used a "once in a lifetime" exemption
They have purchased another home of equal or greater value within 2 years from date of sale
They have lived in and owned the homes as their primary residence for any 2 of the last 5 years and the amount of the gain does not exceed $500,000
The Whitacres sold their house for $184,000 and paid a commission of $11,000. They had owned and occupied the home since it was built 3 years ago. It has=d originally cost $155,000. Which statement is true?
The basis for the old house was $144,000
The Whitacres must add $18,000 to their income for calculating purposes
The gain is excluded from their taxes
The gain is $29,000
A property owner who feels the amount of an ad valorem tax is unfair should appeal to:
the tax assessor
the board of arbitration
the courts
the state board of equalization
A licensee would be in violation of the Fair Housing Laws if he/she refused to show property to a family because:
the fact they cannot qualify for price levels in the area
the fact the computer shows nothing available that meets their needs
the fact they have seven children
the fact the property is already under contract and the owner has stated no back-up contracts
Which of the following statements most closely describes a listing contract?
It serves as an employment agreement between a broker and a seller
It is a list of all of the salable features in a property that is to be placed on the market
Its language is designed to serve as a guide for a closing attorney when a sale is completed
it authorizes a licensee to accept or reject an offer
In some cases a broker's commission can be earned if the broker can prove he/she set in motion a series of events that resulted in the sale. To do so means the broker:
had an exclusive right-to-sell listing
secured the buyer's signature on the sales contract
was the procuring cause of sale
showed the property to the buyer
When a salesperson performs the duties of a licensee, the salesperson does so:
on behalf of himself/herself
as a special agent for the seller
as a general agent for his/her broker
on behalf of the buyer
If a sales person acts as an independent contractor, then:
he/she is responsible to his/her broker to how the work is performed
he/she controls his/her own working hours
all of his/her listings belong to him/her
his/her broker must withhold income tax from commission checks
The listing broker and salesperson owe all but which of the following to the purchaser?
Negotiation of the lowest possible price
Honesty
Integrity
Disclosure of defects
If asked by prospective buyer, the listing agent must disclose all of the following except:
the previous occupant died on the property
a murder had taken place on the grounds
the home was the site of illegal drug activity
the previous occupant had AIDS
The term fiduciary best describes:
a principal
an agent
both an agent and principal
neither an agent nor a principal
The amount of a broker's commission is:
based upon standard rates established in the area
established by agreement between the broker and the seller
established by the real estate commission
six or seven percent for single-family residences, depending on the area
A listing broker has noticed that there has been water in the basement of the house he is marketing, but the seller states that the problem was solved and he does not want it mentioned. Should this fact be revealed by the broker to a prospective purchaser?
The broker owes absolute loyalty to the seller so he must obey the request that the water problem not be mentioned
Yes, the problem is clearly a "material fact" and must be disclosed
As long as the problem was corrected, it is no longer relevant
The broker should mention the water only if asked
An agency may be terminated by all but which of the following?
The property is condemned by the county for the purpose of building a new road
The broker files for bankruptcy
The listing salesperson dies
The seller believes the broker has not marketed the property as promised and revokes the listing
Owner Brewer authorized Broker Owens to sign a contract of sale. This authorization was granted by:
a special provision in the exclusive right-to-sell listing
making Owens a general agent
making Owens an ostensible agent
executing a power of attorney
A general agency empowers the agent to:
transact matters of all types for the principal
transact the principal's affairs in a certain business
perform only specific acts for the principal
perform any legal act for the principal
A listing that allows the owner to sell the property without being liable for a commission, but also appoints only one broker to act as sole agent is an:
exclusive agency listing
open listing
exclusive right to sell listing
sole listing
Exclusive listings must include:
a safety clause
permission for the listing broker to appoint subagents
a definite date of expiration
both B and C
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
If a listing agreement does not specifically authorize a broker to accept and hold an earnest money deposit on behalf of the seller, then the:
deposit must be turned over to the seller immediately
purchaser cannot be required to pay a deposit
broker has implied authority to accept such deposits
broker must obtain power of attorney from a prospective purchaser to hold the deposit
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
A provision in a contract of sale that obligates the purchaser to list the property with a specific broker when the property is resold is:
in violation of antitrust laws
good business practice and perfectly legal
called a tie-in
both A and C
An owner desires to net $147,600 from the sale of her home. Broker Baily accepts the listing with a 6.5% commission. The list price will be?
$157,900
$157,200
$138,000
$227,100
The one-hundred percent commission plan means:
the listing broker is obligated to share the fee with the subagent
there are no fees to be deducted for MLS or franchise services
the salesperson receives half of the fee
the salesperson receives the entire fee but pays the broker a monthly fee for office space, administrative services, and use of the broker's name
Which of the following is characteristic of an exclusive right to sell listing?
It may allow more than one broker to share a commission paid by the seller
the seller may sell the property without being obligated to pay a broker's commission
the seller must sell to a ready, willing, and able buyer found by the broker
the broker may sign a contract of sale on behalf of the seller
Ronald is acting as a buyer broker for his sister, Regina, who is looking for a house. Since he has a written contract authorizing him to consider her a client, he is authorized to do all the following except:
share with her any information he knows about why the seller is selling
let the lender she has chosen know that Regina might not be planning to be an owner/occupant
write an offer for her signature and present it to the listing agent
accept a counter offer on Regina's behalf while she is out of town
Alice has listed a property for an out-of-town investor. Her advertising is producing calls, but a hostile tenant is denying her access for showings. When told of this, the seller replies, "That's your problem." Which is true?
Alice might ask for help from the local police
A really motivated buyer might be found who would offer even without seeing the interior
Alice should have discovered this problem before she listed the property
Alice can renounce her listing since the owner refuses to cooperate
A statement of exaggeration which a reasonable person would recognize as untrue is an example of:
misrepresentation
actual fraud
puffing
innocent misrepresentatioon
If a contract for sale provides for the owner to sell a home in "as is" condition, then:
caveat emptor applies
latent defects must still be disclosed to the purchaser
the owner is generally immune from liability
the broker must assist the buyer in making a thorough inspection
Smith enters into a contract with Jones. Unknown to Smith, Jones has previously been judicially determined of unsound mind. Under these conditions, the contract is:
valid
void
voidable
unenforceable
A broker holding an earnest money deposit:
holds the money to guarantee commission
is a trustee for the principal
must refund it to the purchaser on demand
may keep the money in a personal checking account
Mr. and Mrs. Brown want to have the house Mrs. Richardson is selling, but the Browns might have trouble getting mortgage loan because they recently started a business. The parties agree to enter into a five-year land contract (installment sale). Which is true?
The Browns will now own the property. Mrs. Richardson will receive monthly payments and the balance of the sale price in five years
Mrs. Richardson will be the landlady and the Browns will move in as tenants
The Browns will not be able to occupy the property until five years have passed
The land contract allows the Browns occupancy and also equitable title
Contract law requires that parties to a contract be "competent" to enter into the agreement. Which of the following would probably be qualified to sign?
A young man who has been declared to be an "emancipated minor"
A woman who is being treated for a dependency on prescription drugs
A somewhat confused old lady who is being coaxed by a grandson to sign
A laborer who is illiterate but wants to sign with an X
Smith is trying to sell a property to Jones for $50,000. Jones is anxious to buy but unsure about whether he can raise the money. Therefore, he pays Smith $500 for a 30-day option. Under such circumstances, which is true?
If Jones cannot raise the money in 30 days, his $500 will be refunded
If Jones does raise the money he needs, Smith must sell and the price is not negotiable
If Smith receives another offer for the property for $60,000, he can revoke the option by returning the $500
If Smith does buy the property, the $500 will automatically be applied to the purchase price he has to pay at the closing
Johnson made an offer to Quick to purchase Quick's land. Quick accepted the offer but, before notifying Johnson, Quick died. Under these circumstances Johnson:
may enforce the contract
is protected by the statue of frauds
is protected by supervening illegality
will have to renegotiate the contract with Quick's heirs
After the signing of a valid sales contract, purchaser Bob Clark discovered the land he was buying had no oil underneath it as he had thought. He may:
rescind because of his mistake
have to complete the transaction
sue for damages
make a counter-offer to the seller
In the event of a default, the predetermined amount, which represents the total compensation the injured party will receive, is known as:
punitive damages
statutory damages
constructive damages
liquidated damages
Ben and Will are both mistaken as to the parcel of land that Ben is buying from Will. Under these circumstances:
they each have a voidable contract
there is no contract
they each have an unenforceable contract
each is technically guilty of constructive fraud against the other
The Lawsons are being transferred to another city. They have reached a binding agreement for the sale of their condominium to Jennifer. Three weeks before the closing they learn that the job transfer has been cancelled and ask their agent to let Jennifer know they no longer intend to sell. Which of the following is true?
The Lawsons are not in default since their change of plans was not something they caused
If Jennifer still wants this condominium she should sue the Lawsons for damages
If Jennifer agrees to rescission, she gets her earnest money back, but the listing broker is no longer entitled to a commission
The Lawsons might be forced to sell if Jennifer sues for specific performance
Which of the following would NOT be legally sufficient to support the consideration in a sales contract?
money
property
service
love and affection
Oral contracts for the sale of real property may be valid, but they are unenforceable because of:
the law of agency
the statue of limitations
the statue of frauds
the doctrine of laches
Which of the following actions is most likely to result in constructive fraud:
Broker Jones conceals from Buyer Smith the fact that the roof leaks
Broker Jones tells Buyer Smith that the plumbing works when Broker Jones knows it does not
Broker Jones thinks property values in the neighborhood have gone up 20% in the last year and informs Buyer Smith when careful examination of records would have shown a 5% increase
Broker Jones suggests to Buyer Smith that a duplex will rent for $350 per unit when Jones actually thinks $250 is the maximum
Smith enters into a contract with Jones to buy Jones' land. Before closing, Smith changes her mind. Brown, an acquaintance of Smith, says he would like to buy the land, so Smith transfers her rights and obligations under the contract to Brown. Smith's actions are:
legal if not restricted by the contract
illegal whether mentioned in the contract or not
a novation
a breach of contract
A bilateral contract is one:
in which one party agrees to perform
in which one party is given an option to perform
in which a promise by one party is given in exchange for a promise by another party
that applies only to leases
Undue influence or duress applied to one party to a contract makes the contract:
void
voidable
invalid
unenforceable
In order for a real estate Purchase and Sale Agreement to be valid contract, it must include:
a provision for earnest money of at least one dollar
a complete legal property description
a list of all liens and encumbrances
a financing contingency
Robert made an offer to Dan who immediately made a counter-offer. Which of the following statements is false?
Dan's counter-offer was a qualified acceptance
Robert may make yet another offer to Dan
Robert may call the whole thing off without penalty
If Robert refuses Dan's counter-offer, then Dan may accept the original offer and bind Robert to the contract
Jane, who is seventeen years old, enters into a contract to buy George's home. The contract is:
valid
void
voidable
unenforceable
Between the signing of a contract and the closing, the contract is:
intoxicated
executory
menacing
illegal
When a corporation contracts to buy property, the contract is signed by:
the attorney
the designated officers
the board of directors
the mentally incompetent
The phrase "Time is of the Essence" in the contract means:
the contract is executed
the parties have a reasonable leeway
each party gets one time out
time limits must be strictly observed
All of the following will discharge the contractual obligations except:
performance
destruction
agreement
statue of limitations
If a person who is a minor or mentally incompetent has property to be sold or leased, the contract is signed by:
power of attorney
making a mark
a guardian
an agent
An assignment of a lease is:
a transfer of the entire remaining leasehold
a transfer of less than the entire remaining leasehold
the same as subletting the leasehold
both A and C
Bouton owns an apartment building free of an encumbrance. Bouton has leased an apartment to Frazier who, in turn sublets to Gresham. What is the probable outcome?
Frazier transferred the entire right, title, and interest in the leasehold
Gresham should pay rent to Bouton
If Gresham does not pay rent to Frazier, then Frazier is not liable to Bouton for rent. Bouton must proceed directly against Gresham
Bouton's agreement with Frazier is not affected by the sublease in terms of Frazier's liability
When a tenant is in possession of property and the tenancy may be terminated by notice from either party, there exists:
an estate for years
a periodic estate
a determinable estate
an estate at sufferance
All of the following describe a percentage lease except one based upon a:
percentage of net income
percentage of gross income
minimum rental plus a percentage of the gross income in excess of stated minimum
certain percentage of the property's value
Under a lease, the leasehold estate is a right belonging to the:
landlord
tenant
remainderman
reversioner
Tenant Kelly read her lease very carefully and could find no restrictive covenant regarding the use of the property. Since zoning permitted, Kelly changed her business from a shoe store to a fish market. Landlord Hines objected. What is the probable outcome?
Kelly may operate her fish market for the duration of the lease
Kelly may not change the business purpose of her lease without permission from Hines
Kelly may operate her fish market, until she receives written notice from Hines of his intent to terminate the lease
While Hines may not evict Kelly, he may file suit for damages resulting from the unauthorized use of the property
Angela has allowed her nephew, Josh, to occupy a house she owns while it is on the market. He pays no rent but is required to pay the utility bills and keep the house and yard in "showing" condition. When a buyer is found and an offer accepted, she expects Josh to move out immediately. Under Georgia law, which is true?
Josh is entitled to a 60 day notice
Josh never had a legal lease contract, so Angela could put him out at any time
Josh has a tenancy for years, so no notice is required
Josh should have at least 30 days notice
When real estate under a lease is sold, the lease:
expires with the conveyance
binds the new owner
is subject to termination at the option of either party with proper notice
is valid but unenforceable
A lease is all of the following except:
a conveyance
an option
a contract
an agreement
Able leased certain property to Baker for tree years. With Able's consent, Baker subsequently leased the property to Clemmons. If Baker dies, which of the following is true?
Clemmons' leasehold is still valid and enforceable
Baker's lease is terminated
Clemmons must renegotiate the lease with Able
Clemmons' lease is terminated
A valid written lease does not require:
legal capacity of both parties
an offer and acceptance
valuable consideration
the signatures of both parties
After expiration of a lease, any remaining trade fixtures:
may be removed by the tenant
belong to the tenant and landlord jointly
become the property of the landlord
may be removed by the tenant with compensation to the landlord for their depreciated value
A landlord and tenant's mutual agreement to cancel a lease is best described as:
release and surrender
rescission and acceptance
surrender and acceptance
none of the above
In the absence of an agreement to the contrary, a tenant may:
change the use of the property
mortgage the leasehold estate
lease the property to a third party
all of the above
Roberts signs an agreement with Green for the possession and use of Green's land until October 1st. Their agreement creates:
an estate for years for Robert
a reversionary estate for Green
an estate at will for Roberts
both A and B
All of the following are less than freehold estates except:
conditional fee estate
estate at sufferance
estate at will
periodic estate
A tenant who continues in possession of the premises after rightful possession has ended is called a:
tenant at sufferance
periodic tenant
trespasser
tenant at will
A lease in which the tenant pays rent at a fixed rate during the lease term with the landlord paying expenses associated with ownership is called a:
set lease
straight lease
ground lease
step-up lease
When a landlord leases property, the landlord retains as:
leasehold estate
leased fee estate
quiet title estate
remainder estate
The type of maintenance which reduces down time by conducting regular inspections to identify needed repairs is known as:
routine
corrective
preventative
remedial
The landlord has the right to enter the leased premises:
at reasonable times to make necessary repairs
upon reasonable notice to the tenant
at reasonable times and upon reasonable notice
only with the tenant's permission, unless the lease provides otherwise
Georgia Law requires that the notice to terminate an estate at will is:
60 days from the landlord, 30 days from the tenant
30 days from the landlord, 30 days from the tenant
30 days from the landlord, 60 days from the tenant
no notice is required by either party
Jennifer runs a property management company specializing in apartment houses. Her experience in tenant selection has generally taught her that:
asking for reference is useless because the tenant will always name ones who will say something good
any tenant is preferable to an empty apartment
turnover is not necessarily costly
fewer vacancies occur if the premises are well maintained
A flower shop owner has been occupying a small commercial building for seven years and still has three years to go on his lease. Which of the following is true?
If business falls off because of changes in the neighborhood, he can cancel the balance of the lease and move
When the building is sold, the new owner is not free to raise the rent or give notice to vacate
If the tenant sells the flower shop business, the purchaser must enter into a new lease with the property owner
When the building is condemned for an expressway project, neither the owner nor the tenant is entitled to compensation
A lease provision which allows the landlord to subsequently secure a first mortgage on the leased property is called:
a subordination clause
an escalation clause
a surrender clause
a leasehold clause
