WorksheetsReal Estate Concepts Worksheet
Total questions: 68
Worksheet time: 34mins
Which contract allows only the buyer to decide whether or not to move forward with the purchase?
Bilateral contract
Option contract
Executory contract
Contingency contract
Which document proves ownership of a property?
Deed
Title insurance policy
Mortgage
Purchase contract
What type of listing allows the seller to hire multiple brokers and only pay the one who brings the buyer?
Exclusive agency
Exclusive right-to-sell
Open listing
Net listing
How many square feet are in one acre?
21,780
32,500
43,560
65,340
What type of loan has the same monthly payment but interest decreases and principal increases over time?
Interest-only loan
Fully amortized loan
Balloon loan
Adjustable-rate loan
Which person does a buyer’s agent primarily owe loyalty to?
The seller
The buyer
The principal broker
The bank
Who usually pays off the seller’s existing mortgage at closing?
Buyer
Escrow/title company
Seller directly
Agent
Which type of property description is the most detailed and legally precise?
Street address
Legal description
Subdivision nickname
Zip code
What does “marketable title” mean?
Title free from reasonable defects and readily transferable
Title with minor unresolved claims making the sale risky
Title limited to a quitclaim deed without warranties
Title that is publicly advertised for sale
What document outlines the commission arrangement between broker and seller?
Buyer agency agreement
Listing agreement
Purchase contract
Closing disclosure
What type of zoning separates land uses into residential, commercial, industrial, etc.?
Euclidean zoning
Cluster zoning
Incentive zoning
Spot zoning
A real estate license is required when a person:
Only promotes their own house
Charges for helping others buy/sell properties
Manages personal properties
Gives away land
What is the deposit called that must be placed in a trust account?
Down payment
Escrow funds / Earnest money
Loan origination fee
Title premium
What type of depreciation comes from outdated features like small closets or old design?
Physical deterioration
Functional obsolescence
Economic obsolescence
Natural wear and tear
If an agent represents both buyer and seller, what is required?
No disclosure needed
Only the seller must give consent
Both parties must give informed written consent
Automatically illegal in all states
What is commingling?
Stealing funds
Mixing personal funds with client funds
Depositing late
Depreciating a property
Who has the highest supervisory responsibility in a brokerage?
Sales associate
Buyer’s agent
Principal broker
Property manager
What determines a property’s highest and best use?
Seller’s desire
Anything
Legality, feasibility, and maximum profitability
Current fashion
Which type of estate lasts only for the lifetime of the holder?
Fee simple absolute
Fee simple defeasible
Life estate
Estate for years
Which deed gives the most guarantees to the buyer?
General warranty deed
Special warranty deed
Quitclaim deed
Bargain and sale deed
What type of lien is always first in priority?
Judgment lien
Property tax lien
Mortgage lien
Mechanic’s lien
What government power allows property to be taken for public use with compensation?
Zoning
Escheat
Eminent domain
Condemnation waiver
The financing instrument that secures the property as collateral is the:
Note
Mortgage/Deed of trust
Purchase agreement
Rider form
What is the key feature of an adjustable-rate mortgage (ARM)?
Fixed interest for entire loan
Interest tied to an index and can change
No down payment needed
Changes only at closing
When property value goes up because the area improved (new roads, stores, etc.), this is called:
Functional obsolescence
Appreciation
Depreciation
Deterioration
Which approach is best for valuing a residential owner-occupied home?
Income approach
Cost approach
Sales comparison approach
Zoning approach
What is the required disclosure form when selling a single-family home?
HOA packet
Property condition disclosure
Standard appraisal form
Mortgage contingency form
A property's economic life is:
How much money it generates per year
The period during which it has useful value
The building’s physical duration
Time without taxes
SARA is the act governing:
Safe water standards
Superfund cleanup liability
Private wells
Septic inspections
Which listing guarantees the broker gets paid no matter who finds the buyer?
Open listing
Exclusive agency
Exclusive right-to-sell
Net listing
The 4 unities of joint tenancy are:
Time, title, interest, possession
Time, title, survivorship, tenancy
Possession, probate, interest, title
Title, tenancy in common, recording, time
Who holds legal title in a deed of trust state?
Borrower
Trustee (neutral third party)
Lender
Commissioner
PITI refers to:
Total monthly mortgage payment: Principal, Interest, Taxes, and Insurance
Inspector’s fee
Agent’s monthly investment
Legal cost
A stigmatized property is one that:
Has prior reports of crime or haunting (negative reputation)
Is dirty
Failed inspection
Is commercial
“Time is of the essence” means:
Closing can occur whenever
All dates are strict deadlines
Only the offer has an expiration
It is an optional clause
An easement appurtenant:
Stays with the person
Runs with the property
Must be renewed annually
Is always revocable
Title insurance protects the buyer against:
Future problems created by the buyer
Past defects in title
Physical roof damage
Natural disasters
Which tax treatment allows you to sell a property and delay capital gains if reinvesting?
Ad valorem
Homestead
1031 exchange
Recovery rebate
Which loan is insured by the government?
Conventional
FHA
VA without insurance
Jumbo
What eliminates private mortgage insurance (PMI)?
A 30-year mortgage
At least 20% equity
A fixed interest rate
Title insurance
Which principle states that value is created by future benefits?
Substitution
Anticipation
Competition
Conformity
A fixture is:
Personal property that has been attached to real estate so it becomes real property
A temporary license to use land
A trade-in allowance on closing
A lien placed by a creditor
An "offer" becomes a contract when:
The seller receives it
The buyer signs it
It is signed and acceptance is communicated
It is recorded in the county
Which of the following creates an agency relationship?
Consent and representation
Paying taxes
Signing a deed
Accepting a loan
FHA appraisals focus mainly on:
Condition and safety of the property
Fashion of the decoration
Sentimental value
Agent's profits
In a foreclosure, the right of redemption allows:
Begin construction
Recover the property by paying the debt
Demand a new appraisal
Remove the mortgage from the record
What type of depreciation is caused by outside negative forces? (factory, crime)
Functional
Physical
Economic/External
Voluntary
What is "steering"?
Illegally guiding buyers by race/origin to certain neighborhoods
Assisting with their free choice
Normal marketing
Changing decoration
What is a contingency?
Clause that must be met to proceed with the contract
Agent's commission
Title inspection
Tax credit
Who enforces Fair Housing laws?
HUD
HOA
IRS
EPA
A planned unit development (PUD) mixes:
Only houses
Only factories
Residential and commercial uses
Only parks
What does "liquidated damages" refer to?
Pre-agreed damages in case of breach
Luxury taxes
Improvements to the land
Inspector fees
What is blockbusting?
Inducing owners to sell by suggesting neighborhood racial or ethnic changes for profit
Legally marketing properties across diverse neighborhoods
Steering buyers toward areas that match their preferences
Offering below-market financing to encourage sales
Who holds responsibility for trust accounts?
Principal broker
Sales agent
Cliente
Título
Which loan is guaranteed by the government (no insurance premium)?
FHA
VA
USDA
Jumbo
Which contract must be in writing to be enforceable?
Listados, compra-ventas, >1 año
Contratos verbales simples siempre
Ningún contrato inmobiliario
Solo hipotecas
What is a credit to the buyer at closing?
Earnest money already paid
Comisiones del agente
Impuestos del vendedor
Seguro del título
What do escrow instructions do?
Deciden dónde va el rótulo del “for sale”
Guían quién paga qué y cuándo
Hacen decoración
Fijan impuestos
A “cloud on title” is:
Defecto o duda de propiedad
Impuesto anual
Nuevo préstamo
Renovación estética
Under RESPA, which is illegal?
Kickbacks por referir negocios
Dar información al comprador
Cobrar honorarios
Tasar propiedades
Which party records the deed?
Seller
Buyer (o su cierre/título)
Inspector
MLS
What type of agent is hired for one transaction only?
General agent
Dual agent
Special agent
Universal agent
Which is not a valid contract element?
Mutual assent
Illegal purpose
Consideration
Competent parties
Who typically orders the appraisal on financed purchases?
Buyer
Lender
Escrow
Broker
Which clause makes the loan due in full if the borrower sells the property?
Acceleration
Alienation / Due-on-sale
Habendum
Subordination
What is a CMA primarily used for?
Determining loan approval
Estimating listing price
Measuring taxes
Legal boundary survey
Who usually pays for title insurance in a traditional sale?
Buyer (propietario nuevo)
Seller
Agente
Ciudad
The habendum clause in a deed describes:
Lo que incluye la propiedad y derechos dados
Daños ambientales
Comisiones del agente
Códigos municipales
