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60 Cards in this Set
- Front
- Back
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1. When demand for a commodity decreases and supply remains the same
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price tends to fall.
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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)
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broker.
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All of the following would affect supply EXCEPT
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Population
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All of the following are categories of the uses of real property EXCEPT
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Fiscal policy
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All of the following affect how quickly the forces of supply and demand work
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Degree of standardization of the product's price
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A real estate professional who performs a visual survey of a property’s structure and systems and prepares an analytical report for a purchaser or an owner is acting as a(n)
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home inspector
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When the supply of a commodity decreases while demand remains the same,
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price tends to rise.
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When responsible for maintaining a client’s property and maximizing return on the client’s investment, a broker is serving as a(n)
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property manager.
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Detailed information about the age, education, behavior, and other
characteristics of members of a population group is called |
demographics
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The phrase "bundle of legal rights" is properly included in
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the definition of real property.
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The phrase "bundle of legal rights" is properly included in
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a. the definition of real property
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All of the following are included in the right to control one’s property EXCEPT
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The right to exclude the utilities’ meter reader
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According to law, a trade fixture is usually treated as
a. a fixture. |
personalty
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Kandace is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the
property's location is called |
area preference.
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Which of the following is considered personal property?
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Patio furniture
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All of the following are properly described by the word “improvement” EXCEPT
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Trade fixtures
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Real property can become personal property by
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a. severance
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of the following are physical characteristics of land EXCEPT
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Scarcity
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A broker showed an owner-occupied property that had window screens, custom Venetian blinds, and a wall bed to a buyer whose offer was then accepted by the owner. Before the close of escrow, the seller may remove
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d. none of the identified items.
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Land is considered to be
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a. indestructible.
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A rancher owns a parcel of land on which oil is discovered. If the rancher has not previously conveyed the oil rights, who owns the oil?
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a. The rancher
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The type of housing which can become permanent if affixed to the land is called
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c. manufactured
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All of the following are treated as personal property EXCEPT
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Fructus naturales
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Fixtures are
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treated as real property.
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After the construction of a building in the air rights above a railroad right-of-way, the trains can
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operate as usual.
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All of the following are economic characteristics of land EXCEPT
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uniqueness.
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Generally, personal property can be distinguished from real property by its
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mobility.
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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
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Crops
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Tonya leases store space to Klem for a restaurant, and Klem installs his ovens, booths, counters, and other equipment. When would these items become real property?
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If Klem does not remove them at lease expiration
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Rights or privileges, which are connected with real property, are
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appurtenances
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The term improvements, when referring to real estate, would include
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sidewalks
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Which of the following is NOT a test to identify a fixture?
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Size of the item
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The owner of a house wants to fence the yard for her dog. When the fence is erected, the fencing materials are converted to real estate by
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annexation.
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The uniqueness of land and its inability to be substituted is known as
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Nonhomogenity
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The rights of ownership of real property include all of the following EXCEPT the right of
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compatibility.
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A bill of sale is used to transfer the ownership of
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personal property.
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Efforts to increase homeownership include all the following EXCEPT
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penalizing first-time homebuyers for using funds from IRA’s.
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The real cost of owning a home includes certain costs/expenses that many people overlook. Which of the following is NOT such a cost/expense of home ownership?
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Personal property taxes
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Margie listed her real estate for sale at $100,000. If her cost was 80 percent of the listing price, what will her percentage of profit be when her real estate is sold for the listing price?
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25 percent
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Most homeowner's insurance policies contain which of the following clauses?
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A coinsurance clause
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That portion of the value of owners’ property that exceeds the amount of their mortgage debt is called
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equity
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Homeowners may deduct all of the following expenses when preparing their income tax return EXCEPT
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mortgage interest on a third home.
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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
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either the actual cash value or the prorated repair cost.
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The Levines sold their vacation home for $188,000. If they made a profit of 10 percent, what was the original cost of their property?
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$170,900
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The selling price of a property is $96,000. This can be financed if the buyer can put 10 percent down and pay a loan origination fee of 1.5 percent. How much cash must the buyer produce to complete this transaction?
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10,896
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Federal income tax law excludes gain realized on the sale of a primary residence for individuals filing separately and for couples filing jointly. The amount of this exclusion is (separately/jointly):
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$250,000/$500,000
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Damage from which of the following is NOT covered in a basic homeowner’s policy?
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Flood
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Federal income tax regulations allow homeowners to reduce their taxable income by amounts paid for
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real estate taxes.
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When Homeowner Harry’s sold his residence recently, he found that he had more than $20,000 in equity. This equity did NOT come from
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the use of an interest-only mortgage payment plan.
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The buyer of a $125,000 home has paid $2,000 as earnest money and has a loan commitment for 70 percent of the purchase price. The balance of the cash the buyer needs to complete the transaction is
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$35,500
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Which of the following type of development combines office space, stores, and residential units in a single, vertical community known as a
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mixed -use development
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Three years ago Dr. and Mrs. Henderson moved from the house they had owned for 20 years, but did not sell it. They decided to travel and bought a mobile home to live in. They now sell the house. How much of their capital gain on the house will be taxable?
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None of it, if it is less than $500,000
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The purchaser of a property in a planned unit development will usually NOT receive
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a direct ownership interest in the common areas.
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A real estate broker's responsibility to keep the principal informed of all of the facts that could affect a transaction is the duty of
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disclosure.
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Which of the following would be considered dual agency?
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A broker’s acting for both the buyer and the seller in the same transaction
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A real estate broker acting as the agent of the seller
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must promote and safeguard the seller's best interest
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In designated agency all of the following apply EXCEPT
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the same agent may represent both the buyer and the seller at the same time
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A broker is permitted to represent both the seller and the buyer in the same
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both parties have been informed and agree to the dual representation.
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Which of the following would be considered lawful practice in real estate
brokerage? |
Exaggerated statements about the property
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As an agent for the seller, a real estate broker can
a. guarantee a prospective buyer that the seller will accept an offer at the listed price and terms |
solicit an offer to purchase the property from a prospective buyer.
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