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WorksheetsReal Estate Quiz
Total questions: 100
Worksheet time: 1hrs 8mins
A house with outmoded plumbing is suffering from
curable physical deterioration
external depreciation
incurable physical deterioration
functional obsolescence
In order to be a License member of the commission, a person must be
a KY citizen
a non-felon
all of the above
a licensed broker
A licensed real estate professional acting as a point of contact between two or more people in negotiating the sale, rental, or purchase of a property is known as a(n)
sales affiliate
property manager
appraiser
broker
A landowner constructed a building 7 stories high. Several years later the municipality changed the zoning ordinance, prohibiting buildings that exceed 6 stories in height. Which of the following is true regarding the existing 7-story building?
the owner must obtain a variance
it is nonconforming use
it is a conditional use
the building must be demolished
All of the following should be a consideration in selecting a tenant for the property EXCEPT
size of the available space relative to the tenant's requirements
compatibility of the tenant's business with those of other tenants
tenant's ability to make the rental payments
Ethnic background of the tenant and his or her employees
A mechanic's lien would be properly classified as a(n) ______.
lien
easement
deed
contract
Which of the following is a specific lien?
equitable lien
voluntary lien
general lien
specific lien
All of the following are prohibited under the antitrust laws EXCEPT:
Competing property management companies agreeing to standardized management fees
competing brokers allocating markets based on the value of homes
a broker's setting a company commission schedule
real estate companies agreeing NOT to cooperate with a broker because of the fees that broker charges
A rancher owns a parcel of land on which oil was discovered. If the rancher has not previously conveyed the oil rights, who owns the oil?
the federal government
the tenant to whom the property has been leased
the state government
the rancher
Abel and Baker are joint tenants. Baker sells his interest to Charlie. What is the relationship of Abel and Charlie?
they are joint tenants
they are tenants in common
there is no relationship because Baker cannot sell to Charlie
Abel owns a 2/3 interest and Charlie owns a 1/3 interest
All of the following would be acceptable as evidence of marketable title EXCEPT:
a property owner's warranty deed
an abstract and legal opinion
Torren's certificate
a title insurance policy
The method of describing land that uses degrees, feet, and monuments is known as the:
angular system
metes and bounds system
rectangular survey system
lot and block system
Which of the following is true regarding a special warranty deed?
The grantor's warranties are limited to the time the grantor owned the property
the grantor retains an interest in the ownership
the grantor is making additional warranties beyond those given in a warranty deed
the grantor is warranting that no encumbrances exist against the property
If an owner takes his property off the market for a definite period in exchange for some consideration but grants an individual the right to purchase the property within that period for a stated price, this is called a(n)
contract of sale
installment agreement
right of first refusal
option
A licensee has a duty to report a conviction to the Commission
True, if it is a felony
False, as there is no duty to report
False, if it is a felony
True, if it is a felony or a misdemeanor
If a license is revoked, which of the following is TRUE?
The license revocation is permanent
The license revocation is for 10 years
The license revocation is for 5 years
None of the above
The type of real estate loan that allows the lender to increase the outstanding balance of a loan up to the original sum in the note while advancing additional funds is the
graduated payment mortgage
growing equity mortgage
open end mortgage
wraparound loan
The Commission will not pursue a complaint unless it
has already been investigated
alleges a prima facie case of a license law violation
is typewritten
has already been litigated in court
What is the sales price of a house if the listing broker received $2,593.50 and the total rate is 6%?
(a)
The Commission can conduct an emergency hearing for
Any allegation
Allegations of gross negligence
alleged escrow account violations
alleged advertising violations
A trust is a legal arrangement in which property is held for the benefit of a third party by a(n)
attorney in fact
trustee
trustor
A bilateral contract is one in which:
the promise of one party is given in exchange for the promise of the other party
something is to be done by one party only
only one of the parties is obligated to act
a restriction is placed in the contract by one party to limit the performance by the other
When the supply of a commodity decreases while demand remains the same:
demand tends to rise
demand tends to drop
price tends to drop
price tends to rise
As provided in a valid purchase contract, the real estate transaction must be closed. Closing requires all of the following EXCEPT:
that the seller deliver the deed to the purchaser
that the broker be present to receive any commission
the purchaser pay the balance of the purchase price to the seller
that the seller clear the title so that the condition of the title complies with the terms of the contract
A portion of Walter's building was inadvertently built on George's land. This caused an:
accretion
avulsion
encroachment
easement
If the Commission seeks injunctive relief, the case must be filed where?
In the county where the Commission is located
In the county where the unlawful activity took place
either of the above
none of the above
A small office building sold for $949,000 and the broker received a commission of $54,990. What was the broker's commission rate?
7%
6.2%
11.3%
5.8%
A lease should contain all of the following provisions EXCEPT:
possession of the premises
use of the premises
term of the lease
sale and leaseback clause
All of the following would affect demand EXCEPT
population
fiscal policy
wage levels
demographics
All of the following are true regarding public records EXCEPT
they provide constructive notice about interests in the property
they guarantee marketable title
they establish priority of liens
they give notice of encumbrances
A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would a salesperson receive for her 60% share in the 10% commission?
$960
$800
$1,200
$1,000
The commission is made up of the following:
4 brokers and 1 consumer
6 brokers and 1 consumer
1 consumer and 6 brokers
4 consumers and 1 licensee
All of the following would acquire title to real property EXCEPT
the grantee
the lessee
the devisee
the vendee
All of the following are required for a deed to be valid EXCEPT
date
name of the grantee
legal description
signature of the grantee
A lease that will terminate within one year of its inception
may be oral
must be in writing
violates the provisions of the statute of frauds
is invalid
All of the following are true regarding public records EXCEPT
they provide constructive notice about interests in the property
they give notice of encumbrances
they guarantee marketable title
they establish priority of liens
The Commission is charged with determining if a license applicant meets all of the following criteria EXCEPT:
(a)
The principal difference between an estate for years and an estate from year to year is that
an estate from year to year has no expiration date
an estate for years cannot be terminated
an estate for years is a life estate
an estate from year to year must be in writing
A tenant's lease has expired, but the tenant has not vacated the premise or negotiated a renewal lease. The landlord has declared that the tenant is not to remain in the building. This situation is an example of
an estate for years
tenancy at will
an estate from year to year
tenancy at sufferance
The Governor appoints Commissioners
A standard rectangular survey system section contains
160 acres
640 acres
160 government lots
36 townships
Which of the following is NOT required for the broker to remove money from his or her escrow account?
court order
a mutual release
performance on the contract
signed affidavit
All of the following are essential to the formation of a contract EXCEPT
performance
consideration
offer
acceptance
Broker Janna was accused of violating antitrust laws. Of the following, she was MOST likely accused of
not having an equal housing opportunity sign in her office window
dealing in unlicensed exchange services
price fixing
undisclosed dual agencies
Under license laws, real estate advertising must contain which of the following?
The name of the real estate agent
The price of the property
The location of the property
The name of the brokerage firm
A property owner contracted to have a swimming pool installed on her property. When the pool was completed, she refused to pay for the improvement, and the contractor filed a lien for nonpayment. This lien was most likely a
specific lien
general lien
special lien
voluntary lien
Charging more interest than is legally allowed is known as
usury
a deficiency
escheat
an estoppel
A third party holds title to property on behalf of someone else through the use of a
devise
deed in trust
bequest
quitclaim deed
Broker Kenneth arrives to present a purchase offer to Dorita, an invalid, and finds her son and his wife also present. In the presence of Broker Kenneth, both individuals persistently urge Dorita to accept the offer, even though it is much lower than the price she has been asking for her home. If Dorita accepts the offer, she may later claim that
All of the following are true about radon EXCEPT
modern construction reduces the potential for radon gas accumulation
it is colorless, odorless, and tasteless
radon levels will vary in certain weather conditions
levels can be reduced by installing ventilation systems
If a licensee fails to renew his or her license on time, the license is
expired
revoked
canceled
none of the above
A mortgage broker generally offers which of the following services?
The Real Estate Settlement Procedures Act (RESPA) applies in a loan assumption if the
terms of the assumed loan are modified by the lender
lender charges less than $50 for the assumption
buyer must be approved by the lender for the assumption to occur
seller does NOT want to be liable for the loan in the future
Normally, the priority of general liens is determined by the
order in which they are filed or recorded
order in which the cause of action arose
size of the claim
court
A lot with a depth of 80 ft and an area of 4,800 sq ft was sold for $350 per front foot. What was the total sales price?
$35,000
$21,000
$28,000
$31,800
Which of the following has an indeterminable duration?
estate for years
license
freehold estate
less than freehold estate
A tire company has a manufacturing plant located in an area that has just been re-zoned for residential usage. The company is allowed to continue operating the plant under the new zoning classification. However, if the plant is destroyed by fire, the tire company most likely
CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites, impose
A principal broker must ensure that a personal assistant has which of the following?
reasonable access to his supervising licensee
training
reasonable supervision
all of the above
Advantages of an investment in real estate include all of the following EXCEPT
the use of leverage to increase rates of return
tax deductions
the possibility of a tax-deferred exchange
The defeasance clause in a mortgage requires the mortgagee to execute a(n)
assignment of mortgage
satisfaction of mortgage
subordination agreement
partial release agreement
Which of the following investments cannot be depreciated?
commercial building
single family home
100 acres of vacant land
shopping mall
A broker who is the agent of the buyer should do which of the following?
present to the seller only offers that are acceptable
disclose to the seller that the buyer is a minority person
disclose to the seller the maximum price the buyer is willing to pay
advise the buyer if the listing price of the seller's house is unrealistic
A sales associate with one year of experience is managing a broker's branch office, which is 45 miles from the main office. Which of the following is TRUE?
the sales associate is acting legally because she has enough experience
the sales associate is acting illegally because she does not have enough experience
the sales associate's experience does matter under license law
none of the above
A recorded subdivision plat is used in the
metes and bounds system
rectangular survey system
geodetic survey system
lot and block system
The Commission cannot have more than __________ members from one political party.
4
5
6
7
A parcel of land described as "the NW 1/4 and the SW 1/4 of Section 6, T4N, R8W of the Third Principal Meridian" was sold for $2,500 per acre. The listing broker will receive a 5% commission on the total sales price. How much will the broker receive?
$10,000
$20,000
$30,000
$40,000
What is the cost of constructing a fence 6 ft 6 in high around a lot measuring 90' x 175', if the cost of erecting the fence is $1.25 per linear ft and the cost of material is $.825 per sq ft of fence?
$2,500
$3,750
$4,500
$5,250
A building is valued as $215,000 and contains 4 apartments that rent for $470 each per month. The owner estimates that the net operating income is 65% of the gross rental receipts. What is the capitalization rate?
-3.7%
-14.2%
-10.5%
-6.8%
Carbon monoxide is not
-quickly absorbed in the body
-a result of incomplete combustion
-a natural result of combustion
-easy to detect
When compared with a 30 year payment period, taking out a loan with a 20 year payment period would result in
-lower monthly payments
-higher monthly payments
-greater impound requirements
-slower equity buildup
All of the following are subject to real property ownership rights EXCEPT
-buildings located on the land
-air space above the land
-navigable rivers running through the land
-easements running with the land
All of the following are alternative risk management techniques EXCEPT
-ignoring it
-retaining it
-transferring it
-avoiding it
An important characteristic of land is that it may be modified or improved at some point in time. Depending on its type, an improvement may increase the value of real estate greatly. All of the following are considered to be improvements EXCEPT
-buildings
-crops
-sewers
-roads
Federal income tax regulations allow homeowners to reduce their taxable income by amounts paid for
-repairs and maintenance
-hazard insurance premiums
-principal and interest
-real estate taxes
Can referral fees be legally paid from a licensed broker to a consumer who referred a client?
Yes
No
From one licensed agent to another licensed agent, from one licensed broker to another licensed broker, from one consumer to another consumer.
From one licensed agent to another licensed agent
From one licensed broker to another licensed broker
From one consumer to another consumer
A tenant has an estate for years. According to the written one-year lease, the tenancy will expire on May 1st. To obtain possession as of the date, the landlord
Must give the tenant 30 days' notice
Must give the tenant 60 days' notice
Is not required to give the tenant any notice
Must give the tenant noticed before April 15th
In Kentucky, errors and omissions insurance is
Voluntary
Recommended
Not necessary
Mandatory
The type of listing agreement that provides for payment of a commission to the broker even though the owner makes the sale without the broker's aid is called an
Exclusive right to sell listing
Exclusive agency listing
Open listing
Option listing
A person who has complete control of a parcel of real estate is said to own a
Leasehold estate
Fee simple estate
Defeasible fee estate
Life estate
Capping is the method of
Burying waste and covering with soil
Piling waste into a hill at surface level and covering with clay
Laying soil over the surface of a landfill and planting vegetation
Compacting waste and sealing it in a container
All of the following liens need to be recorded to be valid EXCEPT
Mechanic's lien
Judgement lien
Real estate tax lien
Mortgage lien
All of the following are included in the right to control one's property EXCEPT
The right to exclude the utilities' meter reader
The right to enjoy profits from its ownership
The right to erect 'no trespassing' signs
The right to sell the property to a neighbor
If a licensee knows that a seller is under an exclusive listing with another brokerage, the licensee
may knock of the seller's door
may call the seller on the telephone
may not contact that seller
may send the seller a letter
All of the following are physical characteristics of land EXCEPT
scarcity
indestructibility
uniqueness
immobility
If a homeowner's insurance policy provides coverage for less than 80 percent of the full replacement cost of the dwelling, then the loss of the residence will be settled for
the market value of the property less the land value.
the lowest repair bid.
either the actual cash value or the prorated repair cost.
the total replacement cost.
A father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property?
the remainderman
the father's other children
the mother
the daughter's heirs
Which of the following is true about land taken for public use?
the local use will benefit the residents in the immediate area
the health, safety, and welfare of the government must be the reason
the owner must be fairly compensated
the property is then established as a fee simple determinable estate for a particular use
If a licensee is found in violation of license law and discipline is ordered, the licensee
can appeal to the Commission
can appeal to the attorney general
can appeal to the circuit court
has no recourse
All of the following are exempt from licensure EXCEPT:
trustee
attorney
attorney in fact
Tenant security deposits must be placed where?
in the broker's operating account
in a separate account
in the owners account
none of the above
An earnest money deposit must be placed into escrow within _____ business days of receipt.
3
5
7
10
A bill of sale is used to transfer the ownership of
fixtures
appurtenances
real estate
personal property
All of the following affect how quickly the forces of supply and demand work EXCEPT
degree of standardization of the product's price
mobility of the parties to the transaction
degree of standardization of the product
mobility of the product
A property manager must be licensed, unless:
he receives a rental unit as his compensation
he receives bonuses as his compensation
he only receives a fee for each lease as his compensation
he receives commissions as his compensation
All of the following are duties of a property manager EXCEPT
renting space to tenants
repairing tenant fixtures
complying with legal requirements
preparing a budget
All of the following would be considered specific data EXCEPT:
the employment opportunities in the area
the gross rent multipliers for the area
the dimensions of the subject property
the sales data for comparable properties
A salesperson who represents the seller is showing a house to a prospective buyer-customer. The salesperson knows that the house has water problems in its basement. Which of the following is true?