WorksheetsReal Estate Units 14, 15, 17, 18
Total questions: 50
Worksheet time: 25mins
The legal title always passes from the seller to the buyer
on the date of execution of the deed
when the closing statement has been signed
when the deed is placed in escrow
when the deed is delivered and accepted
Which item would a lender generally require at the closing
Market value appraisal
Application
Credit report
Title insurance commitment
A buyer purchases a home in an area where closings are traditionally conducted in escrow. Which item would a buyer deposit with the escrow agent before the closing date?
Deed to the property
Title evidence
Estopped certificate
Cash needed to complete the purchase
The closing disclosure must be used to illustrate all settlement charges for
Every real estate transaction
Transactions financed by VA and FHA loans only
Residential transactions financed by federally related mortgage loans
All transactions involving commercial property
At closing, the principal amount of a purchaser's new mortgage loan is
A credit to the seller
A credit to the buyer
A debit to the seller
A debit to the buyer
At closing, the earnest money left on deposit with a real estate broker is
A credit to the seller
A credit to the buyer
A balancing factor
A debit to the buyer
The annual real estate taxes on a property amount to $18,000. The seller has paid the taxes in advance for the calendar year. If the closing is set for June 15, which statement is true?
Credit to the seller $8250; debit to the buyer $9750
Credit to the seller $18,000; debit to the buyer $8250
Credit to the buyer $9750; debit to the seller $9750
Credit to the seller $9750; debit to the buyer $9750
Security deposit should be listed on the closing statement as a credit to
The buyer
The seller
The lender
The real estate professional
At the closing of a real estate transaction, the person performing the settlement gave the buyer a credit for certain accrued items. These items were
Bills relating to the property that had already been paid by the seller
Bills relating to the property that the buyer must pay
All of the sellers real estate bills
All of the buyers real estate bills
At closing, an item pre-pay by the seller is
Debited to the seller
Evenly divided between the buyer and the seller
Credited to the buyer
Credited to the seller
The purpose of the real estate settlement procedures act (RESPA) is to
Make sure buyers do not borrow more than they can repay
Make real estate professionals more responsive to buyers needs
Help buyers know how much money is required
Ensure that buyers know all settlement cost that will be charged to them
Which lien affects all real and personal property of a debtor
Specific
Voluntary
Involuntary
General
Priority of liens refers to which of the following?
Order in which a debtor assumes responsibility for payments of obligations
Order in which liens will be paid if property is sold to satisfy a debt
Dates liens are filed for record
Fact that specific liens have greater priority than general Lynn’s
A lien on real estate made to secure payment for a specific municipal improvement project is which of the following?
Mechanics lien
Special assessment lien
Ad valorem
Utility lien
Which of the following is classified as a general lien?
Mechanics lien
Bail bond lean
Judgment
Real estate taxes
Which lien usually would be given highest priority in disbursing funds from a foreclosure sale?
Mortgage dated last year
Real estate taxes due
Mechanics lien for work started before the mortgage was made
Judgment rendered today before foreclosure
A mechanics lien claim arises when a contractor has performed work or provided material to improve a parcel of real estate on the owners order and the work has not been paid for. Such a contractor has a right to
Tear out the work
Record a notice of the lien
Record a notice of the lien and file a court suit within the time required by state law
Have personal property of the owner sold to satisfy the lien
Which of the following is a voluntary, specific lien?
IRS tax lien
Mechanics lien
Mortgage lien
Sellers Lien
A buyer purchased a parcel of real estate. Title has passed, but today the buyer has not paid the purchase price in full, as originally agreed. If the seller wants to force payment, which remedy is the seller entitled to seek?
Judgment
Attachment
Mechanics lien
Lis pendens
A general contractor recently filed suit against a homeowner for nonpayment. The contractor now learns that the homeowner has listed the property for sale with a real estate professional. In this situation, which of the following will the contractors attorney use to protect the contractors interest?
Seller’s Lien
Buyer’s lien
Assessment
Lis pendens
Which statement MOST accurately describes special assessment liens?
They are general liens
They are paid on a monthly basis
They take priority over mechanics liens
They cannot be pre-paid in full without penalty
Which of the following creates a lien on real estate?
Easement running with the land
Unpaid mortgage loan
License
Encroachment
A mechanics lien would be available to all of the following EXECPT
Subcontractors
Contractors
Surveyors
Real estate professionals
Which of the following is a specific, involuntary, statutory lien?
Income tax lien
Real estate tax lien
Estate tax lien
Judgment lien
General real estate taxes levied for the operation of the government are
Assessment taxes
Special taxes
Improvement taxes
ad valorem taxes
All of the following properly would be exempt from real estate taxes EXCEPT
Public hospitals
Golf courses operated by the park district
Synagogues and churches
Apartment buildings
The characteristics of value include which of the following?
Competition
Scarcity
Anticipation
Balance
A homeowner constructs a five bedroom brick house with an indoor pool in a neighborhood of modest two bedroom and three bedroom frame houses on narrow lots. The value of this house is most likely to be affected by what principle?
Progression
Assemblage
Change
Regression
The owners of a modest ranch house in a neighborhood of larger, more expensive homes may find that the value of their home is affected by what principle?
Progression
Increasing returns
Competition
Regression
For appraisal purposes, accrued depreciation is not caused by
Functional obsolescence
Physical deterioration
External obsolescence
Accelerated depreciation
Which transaction is best described as involving a ground lease?
A landlord agrees to let a tenant drill for oil on a property for 75 years
The tenant agrees to pay a proportional increase rental based on annual appraisals of the rented property
A landlord charges a commercial tenant separate amounts for the land and the least building
The tenant pays a base amount for the property plus a percentage of business generated
A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant gross receipts exceeding $5000. This type of lease is called
A standard lease
A gross lease
A percentage lease
A net lease
A tenancy in which the tenant continues and possession after the lease has expired, without the landlord’s permission is
The tenancy for years
A periodic tenancy
A tenancy at will
An estate at sufferance
A lessee has a one year leasehole interest in a house. The lease automatically renews itself at the end of each year. The lessee’s interest is referred to as a tenancy
For years
From period to period
At will
At sufferance
Rent would best be described as
Contractual consideration to a third-party
Consideration for the use of real property
All monies paid by the lessor to the lessee
The total balance owed under the terms of a lease
Under the terms of a net lease, a commercial tenant would usually be responsible for paying all of the following property expenses except
Mortgage debt service
Maintenance expenses
Fire and extended coverage insurance
Real estate taxes
Which of the following describes a net lease
An agreement in which the tenant pays a fixed rent and the landlord pays all taxes, insurance, and expenses related to the property
A lease in which the tenant pays rent, plus some – or most - of the operating expenses related to the property
A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property
An agreement granting an individual a leasehold interest in fishing rights for a shoreline property
A tenancy in which the tenant continues in possession after the lease has expired, without the landlord’s permission is
A tenancy for years
A periodic tenancy
A tenancy at will
A tenancy at sufferance
A tenant right to possess real estate for a definite period with a specific starting and ending date is
An estate for years
An estate at will
An estate at sufferance
An estate from period to period
Which of the following describes a gross lease
An agreement in which the tenant pays a fixed rent and some or all of the shelties and the landlord pays all taxes, insurance, and expenses related to the property
A lease in which the tenant pays rent plus some of the operating expenses related to the property
A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property
An agreement allowing the tenant to terminate the lease if certain conditions near the premises become unbearable
A tenant signs a lease that includes schedule of rent increases on specific dates over the course of the lease term. What kind of lease has this tenant signed
Percentage
Net
Graduated
Index
A tenant signs a lease that includes the following clause:” The stated rent under this agreement will be increased or decreased every three months based on the percentage change in the consumer price index ( CPI) for that period.” What kind of lease has this tenant signed
Percentage
Net
Graduated
Index
The death of either the landlord or the tenant will not terminate the lease and the parties' heirs will NOT be bound by its terms under which of the following tendencies
Tenancy for years
Periodic tenancy
Tenancy at will
Tenancy at sufferance
The tenant lease is a heated apartment during a bitterly cold winter, but soon after the tenant moves in, the landlord failed to provide heat because of a defective central heating unit. The tenant vacates the premises and refuses to pay any rent. This is an example of
Abandonment
Actual eviction
Constructive eviction
Lessor negligence
A real estate professional said to a homeowner, “ I hear they’re moving in. There goes the neighborhood! Better put your house on the market before values drop!” This is an example of what illegal practice
Steering
Blockbusting
Redlining
Fraudulent advertising
The act of directing home seekers toward or away from particular areas, either to maintain or to change the character of the neighborhood, is
Blockbusting
Redlining
Steering
Permitted under the Fair Housing Act of 1968
A lenders refusal to lend money to potential homeowners attempting to purchase properties located in particular ethnic neighborhoods is known as
Redlining
Blockbusting
Steering
Prequalifying
All of the following would be permitted under the federal fair housing act except
An expensive club in New York renting rooms only to members who are graduates of a particular university
The owner of a 20 – unit residential apartment building renting to men only
A Catholic covent refusing to furnish housing for a Jewish man
An owner refusing to rent the other side of the duplex in which she lives to a family with children
Housing that qualifies for exemption from Familia status provisions
Includes housing intended for persons 50 or older
Includes a restriction that 80% of the units be occupied by persons 55 or older
Is not permitted under the federal Fair Housing Act
Is permitted for owner – occupied buildings with four or more units
The federal Fair Housing Act does NOT prohibit
Blockbusting
Discriminatory advertising
Redlining
Discriminating on the basis of marital status
