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112 Cards in this Set

  • Front
  • Back
When demand for a commodity decreases and supply remains the same,


a. price tends to rise
b. price tends to fall
c. price is not affected
d. the market becomes stagnant
b. price tends to fall
A licensed real estate professional, acting as a Point of Contact between two or more people in negotiating sale,rental,or purchase of a property is known as a(n)
a. sales affiliate
b. broker
c. property manager
d. appraiser
b. broker
Which of the following would NOT affect supply?

a. population
b. construction costs
c. Government controls
d. the labor force
a. population
Which of the following is NOT a category of the uses of real property?

a. residential
b. developmental
c. agricultural
d. industrial
b. developmental
Which of the following would NOT affect demand?

a. population
b. demographics
c. wage levels
d. fiscal policy
d. fiscal policy
Which of the following does NOT affect how quickly the forces of supply and demand work?

a. degree of standardization of the product
b. mobility of the product
c. degree of standardization of the product's price
d. mobility of the parties to the transaction
c. degree of standardization of the product's price
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)

a. educator
b. appraiser
c. property manager
d. home inspector
d. home inspector
When the supply of a commodity decreases while demand remains the same

a. price tends to rise
b. price tends to drop
c. demand tends to rise
d. demand tends to drop
a. price tends to rise
When responsible for maintaining a client's property and maximizing return on the client's investment, a broker is serving as a(n)

a. rental agent
b. building maintenance specialist
c. property manager
d. investment counselor
c. property manager
Detailed information about the age, education, behavior and other characteristics or members of a population group is called

a. population
b. demographics
c. family lifestyles
d. households
b. demographics
At a court-ordered foreclosure sale the existing liens would be paid in the following order:

a. mechanics lien, 1st mortgage lien, real estate lien
b. real estate tax lien, 1st mortgage lien, creditor lien
c. 1st mortgage lien, real estate tax lien,IRS lien
d. none of the above
b. real estate tax lien, 1st mortgage lien, creditor lien
The relationship between an agent and their client is best described as

a. general
b. leverage
c. reversionary
d. fiduciary
d. fiduciary
Two neighbors of an adjoining property become involved in a dispute over the ownership of a fence which is built on the property line. One neighbor claims ownership rights because he paid for the fence, the other claims ownership rights because he built the fence. The fence belongs to the:
a. property owner's association
b. neighbors of the adjoining properties own it together
c. neighbor who paid to have it installed
d. neighbor who supplied the labor
b. neighbors of the adjoining properties own it together
The economic life of a building ends when the

a. income is less than an equal amount invested elsewhere
b. building and land value together equal the land value
c. sixtieth year ends
d. building's use no longer is the highest and best use
b. building and land value together equal the land value
Which of the following phrases does not apply to a contract?

a. mutual assent
b. valuable consideration
c. words of conveyance
d. offer and acceptance
c. words of conveyance
What happens if an owner suffers financial loss from rezoning by an exercise of police power?

a. the owners are never allowed to continue the former zoning use
b. there will be a condemnation proceeding
c. the owner will be justly compensated for this loss
d. the owner can appeal to the zoning committee
d. the owner can appeal to the zoning committee
Which of the following is an example of a lessor/lessee relationship?

a. tenancy by the entirety
b. tenancy at will
c. joint tenancy
d. severalty
b. tenancy at will
RESPA applies to which of the following?

a. the sale of a townhouse in a new development
b. buyer's assumption of an existing loan when the lender charges a $45 assumption fee
c. a contract for deed
d. the sale of a residential property with 100% seller assisted financing.
a. the sale of a townhouse in a new development
A quit claim deed is used to

a. remove a cloud from a title
b. sue for specific performance
c. enforce non-payment of rents
d. record a deficiency judgment
a. remove a cloud from a title
ABC Realty lists the property of a seller, whose brother is the firm's legal counsel. The seller's brother will assist in negotiating any offers. For his service the listing agreement provides for the brokerage commission to be split with the attorney. Is this agreement legal?
a. yes, as long as it is disclosed
b. yes, because the brother is a real estate attorney
c. no, the brother must be a licensed real estate broker to receive a commission
d. no, the Real Estate Board must issue a provisional license.
c. no, the brother must be a licensed real estate broker to receive a commission
Which of the following statements is TRUE regarding federally insured loans or guaranteed loans?

a. all DVA loans are freely assumable
b. an FA loan may be granted to a qualified buyer who intends to rent the property
c. FHA loan insures the borrower up to 100% of the loan
d. A VA loan can be granted to an eligible veteran who intends to occupy the property
d. A VA loan can be granted to an eligible veteran who intends to occupy the property
Under an exclusive agency listing the seller would NOT be responsible for paying a commission to the listing broker if

a. the listing broker never showed the property
b. the seller went to another broker and the other broker found a buyer
c. another broker saw the listing on MLS and sold the property
d. the seller himself finds a buyer
d. the seller himself finds a buyer
The Federal Fair Housing Act makes it unlawful to discriminate in the sale or rental of housing based on

a. race, color, religion, national origin, sex preference, handicap, family status
b. race, color, religion, national origin
c. race, color, religion, sex, marital status
d. race color, religion, handicap, national origin, sex, occupation, familial status, elderliness
b. race, color, religion, national origin
Regulation Z, pursuant to the Truth-in-Lending Act, regulates the lender with respect to

a. how much interest he may charge
b. providing the buyer with an accurate amortization schedule
c. computation and disclosure of the APR(annual percentage rate)
d. all of the above
c. computation and disclosure of the APR(annual percentage rate)
A fiduciary relationship exists between

a. a broker and the seller
b. a sales agent and his or her broker
c. a property manager and the owner
d. all of the above
d. all of the above
A landlord signs a 5-year lease. To compensate for increases in the cost of living he includes a provision that automatically increases the rent 3% per year. This type of lease is called:
a. a graduated lease
b. an accelerated lease
c. a percentage lease
d. an index lease
a. a graduated lease
PITI includes all of the following EXCEPT:
a. principle payment
b. interest payment
c. real estate taxes
d. income taxes
d. income taxes
Mr Jones purchased a subdivided lot from Mr. Smith, who reserved the waterfront lot for himself. Mr Jones would like to use the water for recreational purposes, but he needs permission from Mr Smith to cross over his land. Mr Jones can best protect this privilege from Mr Smith's changing his mind at a later date by obtaining:
a. an easement by prescription
b. an easement in gross
c. an appurtenant easement
d. a license from Mr. Smith
c. an appurtenant easement
A small community has just been notified that a toxic waste dump is being established nearby. The homeowner's association of the subdivision adjacent to the designated property may file a petition to have the plan halted based on
a. environmental deterioration
b. internal obsolescense
c. external obsolescence
d. functional obsolescence
c. external obsolescence
A broker making the following statement, "You can triple your investment in this property in less than 3 years, I guarantee it," could be guilty of
a. puffery
b. misrepresentation
c. undisclosed dual agency
d. nothing more than being eager to make a sale
b. misrepresentation
A mortgage secured by both real and personal property would be referred to as
a. a blanket mortgage
b. an open mortgage
c. a chattel mortgage
d. a package mortgage
d. a package mortgage
A house is purchased for $165,000 with a 10% down payment. When the first month's payment is made, $866.25 is applied to interest. What is the rate of interest on this loan?
a. 1.59%
b. 10%
c. 7%
d. none of these
c. 7%
All of the following statements pertaining to the Federal Fair Housing Act are true EXCEPT:
a. the law requires the complaintant to prove intent to discriminate
b. the law is administered by the Office of Fair Housing & Equal Opportunity under the supervision of the Secretary of HUD
c. the aggrieved party can seek relief by filing a complaint with HUD, or suing in federal court
d. complaints under the Civil Rights Act of 1866 are taken directly to federal court
a. the law requires the complaintant to prove intent to discriminate
Fee simple ownership of one unit in an industrial park with a share of the common elements describes a(an)
a. cooperative
b. time-share estate
c. condominium ownership
d. joint tenancy in the common area.
c. condominium ownership
Real estate brokers are limited as to the maximum commission that they can charge by
a. the Federal Trade Commission
b. state usury laws
c. the principal and the broker
d. the state real estate commission
c. the principal and the broker
A house is listed for $295,000 and sells for $284,950. The seller is paying a 6% commission and 2 points on the buyers' 80% loan-to-value ratio mortgage. In addition to the 2 points the seller is also paying closing costs of $5000. There is also an existing first trust on the sellers home in the amount of $132,000. What will the seller net from the sale of this property?
a. $258,293.80
b. $135,580.00
c. $127,293.80
d. none of the above
d. none of the above
A Korean buyer has adamantly requested that the real estate agent show her property in a predominantly Korean neighborhood. The agent should
a. refer her to a Korean agent in the same firm
b. advise her that you don't have these statistics, but plan to find them for her
c. refer her to a firm where agents are predominantly Asian
d. show her any neighborhood that she specifically requests
d. show her any neighborhood that she specifically requests
The best approach for appraising an historical residence is
a. comparable sales
b. capitalization
c. reconciliation
d. cost approach
d. cost approach
A house is listed for $182,000 and sells for $180,000. The commission is 7% on the first $100,000 of value and 5% on the remainder. The listing agent gets 20% of the total. The selling agent gets 25%. How much would you receive in commission if you were both the listing and selling agent?
a. $4400
b. $6500
c. $11,000
d. none of the above
d. none of the above
The difference between police power and eminent domain can BEST be described as
a. state's authority to implement regulation vs. enabling acts
b. eminent domain vs. condemnation
c. rights of government to enact regulation regarding the use of property vs. rights of government to take privately owned property for public use.
d. none of the above
c. rights of government to enact regulation regarding the use of property vs. rights of government to take privately owned property for public use.
In a real estate transaction, the cooperating broker may be any of the following except
a. property owner
b. selling broker
c. subagent
d selling agent
a. property owner
A buyer has purchased a home for $100,000. The buyer will make a down payment of $15,000 and obtain a loan for $85,000. The sales contract would still be valid even if the parties failed to supply which of the following information?
a. date of performance
b. purchase price
c. signature of all parties
d. amount of monthly payment
d. amount of monthly payment
The loan to value ratio refers to the
a. ratio of debt to value of the property
b. ratio of loan to sales price of the property
c. ratio of market value to assessed value
d. "rule of thumb" formula
a. ratio of debt to value of the property
The certificate signed by the mortgagee to relieve the mortgagor's obligations is known as
a. defeasance
b. remise
c. satisfaction
d. nothing, the mortgagee had the obligation
c. satisfaction
A property is sold and closing on September 15. The annual real estate taxes of $3,348 have been paid for this calendar year. What is the settlement sheet entry?
BUYER________________ SELLER
a. $2,371.50 debit____$2371.50 credit
b. $976.50 debit_____$976.50 credit
c. $2,371.50 credit___$2,371.50 debit
d. $976.50 credit_____$976.50 debit
b. $976.50 debit $976.50 credit
When Jay purchased a building for his bowling alley, the previous tenant did not remove his restaurant equipment at the expiration of the lease. The restaurant equipment
a. belongs to the previous tenant
b. became part of the real property by accession
c. is now a trade fixture
d. should have been sold with the property
b. became part of the real property by accession
If an owner enters into a listing agreement which may not require him to pay a commission to any broker, the owner most likely has an
a. exclusive right to sell listing
b. open listing
c. administrative listing
d. optional listing
b. open listing
Under federal tax law, effective May 7, 1997
a. married home-sellers may exclude up to $500,000 gain on the sale of their principal residence from capital gains tax
b. homeowners must live in their residence for five of the last 10 years in order for the home to qualify as a principal residence for tax purposes
c. homeowners can exchange their residence for an investment property for tax purposes
d. homeowners can deduct losses incurred from the sale of a principal residence
a. married home-sellers may exclude up to $500,000 gain on the sale of their principal residence from capital gains tax
Dream Developers has secured a loan on their present project by pledging several lots as security for the loan. This type of financing is a
a. blanket mortgage
b. subordination agreement
c. package mortgage
d. construction loan
a. blanket mortgage
A salesperson's fiduciary responsibility is to the
a. buyer and seller
b. principal
c. real estate commission
d. customer
b. principal
Amy just purchased her first home. Because she could not show a two-year job history, she was unable to obtain a conventional mortgage. The seller agreed to accept a small down payment and will hold a mortgage amortized over 30 years with monthly principal and interest payments and the loan balance due in three years. This describes a
a. balloon payment loan
b. reverse-annuity mortgage
c. term mortgage
d. wraparound mortgage
a. balloon payment loan
Larry, Curly, and Mo hold property as tenants in common. Larry sells his interest to his children. Curly dies. Mo is
a. a tenant in common with Larry's children and Curly's heirs
b. a joint tenant with Larry's children and a tenant in common with Curly's heirs
c. a severalty owners
d. none of the above
a. a tenant in common with Larry's children and Curly's heirs
Hillcrest Farms was established as a thoroughbred horse farm in 1930. The surrounding area has since been zoned residential. The farm is an example of
a. a non-conforming use
b. a variance
c. a conditional use
d. down zoning
a. a non-conforming use
A house sells for $285,000. The buyer wants a 95% loan to value ratio loan. The interest rate is currently 8.5% and the buyer wants to know what the difference in cost would be between a 15-year and a 30-year loan payment. Use the chart below to calculate your answer.
Equal Mnthly Pymt to amortize $1000
Rate 10yr 15yr 20yr 25yr 30yr
7.0 11.01 8.99 7.75 7.07 6.65
7.5 11.87 9.27 8.06 7.39 6.99
8.0 12.14 9.56 8.36 7.72 7.34
8.5 12.40 9.85 8.68 8.05 7.69
9.0 12.57 10.14 9.00 8.39 8.05
a. $2,082.07
b. $584.82
c. $881.50
d. $2666.89
b. $584.82
"A" bought a house from "B" for $200,000. "A" has obtained a loan commitment from the bank at 8.5% for 30 years. the mortgage payment is $1384.20 per month on the $180,000 amount. Determine the balance of "A's" loan after the second month's payment.
a. $189,177.80
b. $179,780.83
c. $187,077.80
d. $199,910.82
b. $179,780.83
Which of the following may terminate a listing agreement?
a. death of either party
b. bankruptcy of either party
c. destruction of the property
d. all of the above
d. all of the above
Who controls the maximum interest rate that private lenders can charge for home mortgages?
a. anti-trust laws
b. state usury laws
c. Fair Housing laws
d. Truth-in-lending laws
b. state usury laws
Barbara is a life tenant and her daughter, Lucy, is the remainderman. Barbara leases the property to her son, Frank, for two years. Barbara dies six months later. Lucy tells Frank to leave the property. Frank
a. has an interest in the property because of survivorship rights
b. has a valid lease for 18 months
c. must leave because the lease was valid only during Barbara's lifetime
d. must leave but only until his reversionary rights are established
c. must leave because the lease was valid only during Barbara's lifetime
Market value is best determined by considering
a. acquisition cost, market data, and replacement cost
b. comparision, income, and replacement cost
c. purchase price and summation cost
d. income stream and acquisition cost
b. comparision, income, and replacement cost
Which of the following are investors in the secondary mortgage market?
a. Fannie Mae
b. Freddie Mac
c. Ginnie Mac
d. all of the above
d. all of the above
An agency relationship exists between
a. a property manager and an owner
b. a salesperson and employing broker
c. a broker and a buyer-client
d. all of the above
d. all of the above
A sales contract can be terminated by all of the following EXCEPT
a. mutual consent
b. impossibility of performance
c. death of the seller
d. operation of law
c. death of the seller
Under RESPA regulations, all of the following are federally related loans EXCEPT
a. loans made by banks insured by federal agencies
b. loans made by a private endowment fund
c. loans intended to be sold to Fannie Mae, Ginnie Mae, or Freddie Mac
d. loans insured by FHA or guaranteed by VA
b. loans made by a private endowment fund
Which of the following does not have a legal effect on a sales contract?
a. lender forecloses on seller's loan
b. seller dies prior to closing
c. state exercises their police power and claims the property by eminent domain
d. interest rates go up and the buyer is unable to qualify for the loan
b. seller dies prior to closing
An appraiser allows for depreciation to improvements only when using the
a. cost approach
b. income approach
c. sales comparison approach
d. none of the above
a. cost approach
When a buyer gives an earnest money check the salesperson should
a. keep the check with the contract until settlement
b. give it to the broker for deposit
c. give it to the lender
d. return it to the buyer only if the contract is ratified
b. give it to the broker for deposit
Prior appropriation of waterfront rights is determined by
a. the length of the body of water on which the property is located
b. information contained in the deed to the property
c. the depth of the body of water on which the property is located
d. the laws of the state in which property is located
d. the laws of the state in which property is located
A $240,000 property has a gross income of $47,260 annually. Management fees cost $18,000 per year and heating costs $205 per month. What is the capitalization rate on this property?
a. 19.2%
b. 20%
c. 11%
d. 64%
c. 11%
A contract may be defined as any of the following EXCEPT
a. unenforceable
b. lis pendens
c. voidable
d. valid
b. lis pendens
When Jason, a 17-year-old, inherited $175,000 from his grandfather he purchased a skating rink from Mr. Ice, an adult. Which of the following is NOT true?
a. Jason may declare the contract void and get his money back
b. the contract is voidable
c. Mr Ice cannot void the contract when he discovers Jason is a minor
d. none of the above
d. none of the above
Building codes can NOT restrict which of the following?
a. construction standards
b. financing
c. square footage
d. all of the above
b. financing
The penalties resulting from a HUD administrative hearing for illegal discrimination and violation of Title VII of the Civil Rights Act of 1968 as amended are
a. $100 for the first violation and $500 for each subsequent violation
b. $10,000 for the first offense, $25,000 for a second violation within 5 years, and $50,000 for further violations within 7 years
c. $2700 for a first violation and $7200 for a second and subsequent violation
d. none of the above
b. $10,000 for the first offense, $25,000 for a second violation within 5 years, and $50,000 for further violations within 7 years
In preparing an estimate of value for a twenty-five unit apartment building, an appraiser will MOST likely use
a. cost approach
b. market data approach
c. FNMA guidelines
d. income approach
d. income approach
A property was assessed at $22,000 and the asking price was $67,500. It was sold for $63,400 and the lender's appraised value was $65,500. The loan-to-value ratio will be based upon which amount?
a. $22,000
b. $63,400
c. $65,500
d. $67,500
b. $63,400
For an individual to be entitled to a commission she/he must be
a. a licensed broker
b. procuring cause
c. employed by the principal
d. all of the above
d. all of the above
Sammy Seller has received an offer of $100,000 and paying all buyers' closing costs from Benny Buyer. Sammy counteroffers the sale price at $105,000 and agrees to pay all buyers' closing cost. Which of the following statements is TRUE regarding the counteroffer?
a. the counteroffer totally rejects Benny's offer
b. Benny is now considered to be the offeror
c. Sammy may not withdraw his counteroffer until it is delivered to Benny and he has a chance to accept, reject or counter it.
d. sammy may not change his mind at any time
a. the counteroffer totally rejects Benny's offer
A seller has listed his property with a broker but has reserved the right to sell the property himself and not pay a commission. The broker however will be paid if anyone else sells the property. This type of listing is
a. illegal
b. an exclusive agency listing
c. an exclusive right-to-sell listing
d. an open listing
b. an exclusive agency listing
A home sells for $250,000 and is assessed at 43% of the market value for tax purposes. The tax rate for the county is $3.85 per $100. What would the buyer's monthly tax payment be?
a. $1865.31
b. $344.90
c. $1075.00
d. none of the above
b. $344.90
Gene entered into a contract to buy a residential property from Bill with owner-financing. In the contract Gene agreed to allow Bill to hold legal title until the loan is paid in full. This type of contract is called a/an
a. land/installment contract
b. option contract
c. purchase money mortgage
d. subordination agreement
a. land/installment contract
When a salesperson enters into an Exclusive Right-to-Represent Buyer Agreement, the salesperson owes all of the following fiduciary duties EXCEPT
a. to obey all of the instructions of the buyer
b. to be loyal to the buyer
c. to be accountable for the earnest money deposit
d. to disclose confidential information from a seller
a. to obey all of the instructions of the buyer
Properties where undesireable events have occurred, such has homicide, illegal drug manufacturing, gang related activity, suicide, etc., are described as
a. stigmatized
b. bulk transfers
c. adverse possession
d. conditional use
a. stigmatized
During the period of time between contract ratification and settlement, the contract is considered
a. executory
b. executed
c. equitable
d. voidable
a. executory
An independent broker named Rich lists a home. Bob, a broker with ABC Realty(not a buyer's agent), sells the property. In this transaction what is the relationship between Bob and Rich?
a. Rich is a sub-agent; Bob is the agent
b. Bob is a sub-agent; Rich is a sub-agent
c. Bob is the sub-agent; Rich is the agent
d. Bob is the agent; Rich is the agent
c. Bob is the sub-agent; Rich is the agent
A gas station located in an area that is currently zoned as residential is destroyed in a fire. Which of the following is true?
a. the owner may not rebuild under any circumstances
b. the owner may rebuild if he obtains a variance
c. the owner may restore the property to its original condition but may not build or expand beyond the original structure
d. the owner may not rebuild until he gets a petition signed by all surrounding homeowners saying they need a gas station
b. the owner may rebuild if he obtains a variance
Of the following real estate related contracts, which could be considered a personal service contract?
a. an exclusive right to represent buyer agreement
b. a standard purchase agreement
c. a residential lease
d. none of the above
a. an exclusive right to represent buyer agreement
Mr. Smith has an easement over Mr. Jones' adjacent property for the purposes of ingress and egress. Which of the following statements is true?
a. this is an appurtenant easement
b. Mr. Jones cannot terminate the easement
c. the easement "runs with the land"
d. all of the above
d. all of the above
The broker's responsibilities in presenting a written offer to purchase to the seller include all of the following EXCEPT
a. transmitting to the seller all written offers before seller accepts an offer
b. making known all the ramifications and practical effects of an offer
c. presenting only offers that are within 10% of the asking price
d. presenting all offers as rapidly as they are received
c. presenting only offers that are within 10% of the asking price
Broker A and Broker B agree to list and sell properties only in their designated area of the community. Which of the following statements is correct?
a. this is a violation of Anti-Trust Laws
b. this is a violation of the Fair Housing Laws
c. this is a violation of the Truth-in-Lending Act
d. this is a violation of RESPA
a. this is a violation of Anti-Trust Laws
Which of the following statements is TRUE regarding points charged by lenders?
a. a point is 1% of the selling price
b. a point increases the yield to the lender
c. points are negotiable between buyer and broker
d. the APR is equal to the number of points charged to the buyer by the lender to originate the loan
b. a point increases the yield to the lender
The phrase "bundle of legal rights" is property included in
a. the definition of real property
b. a legal description
c. real estate transactions
d. leases for less than one year
a. the definition of real property
Which of the following is NOT included in the right to control one's property?
a. the right to invite people onto the property for a political fundraiser
b. the right to exclude the utilities' meter reader
c. the right to erect "no trespassing" signs
d. the right to enjoy profits from it's ownership
b. the right to exclude the utilities' meter reader
According to the law, a trade fixture is usually treated as
a. a fixture
b. an easement
c. personalty
d. a license
c. personalty
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
a. physical deterioration
b. area preference
c. permanence of investment
d. immobility
b. area preference
Which of the following is considered personal property?
a. wood-burning fireplace
b. awnings
c. bathtubs
d. patio furniture
d. patio furniture
Which of the following is NOT properly described by the word "improvement"?
a. streets
b. a sanitary sewer system
c. trade fixtures
d. the foundation of a building
c. trade fixtures
Real property can become personal property by
a. severance
b. purchase
c. hypothecation
d. attachment
a. severance
Which of the following is NOT a physical characteristic of land?
a. indestructibility
b. uniqueness
c. immobility
d. scarcity
d. scarcity
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
a. all of the identified items because they are trade fixtures
b. only the venetian blinds as personal property
c. only the wall bed because it is real property
d. none of the identified items
d. none of the identified items
Land is considered to be
a. indestructible
b. a wasting asset
c. immune to the force of supply and demand
d. subject to personal property rights
a. indestructible
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?
a. the rancher
b. the tenant to whom the property has been leased
c. the state government
d. the federal government
a. the rancher
Certain items installed on a premises by tenants and related to their business are called
a. fixtures
b. emblements
c. trade fixtures
d. easements
c. trade fixtures
Which of the following is NOT treated as personal property?
a. chattels
b. trade fixtures
c. emblements
d. fixtures
d. fixtures
Fixtures are
a. treated as real property
b. considered to be chattels
c. removable by a tenant before the expiration of the lease
d. removable by a tenant after the expiration of the lease
a. treated as real property
After the construction of a building in the air rights above a railroad right-of-way, the trains can
a. operate as usual
b. no longer use the tracks under the building
c. use the tracks under the building only if they cause no problem for the building's occupants
d. use the tracks under the building as long as they first obtain the building owner's permission
a. operate as usual
All of the following are economic characteristics of land EXCEPT
a. scarcity
b. permanence of investment
c. uniqueness
d. area preference
c. uniqueness
Generally personal property can be distinguished from real property by its
a. greater variety
b. mobility
c. cost
d. multipicity of use
b. mobility
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 the real estate greatly. Which one of the following would NOT be considered an improvement?
a. sewers
b. crops
c. buildings
d. roads
b. crops
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?
a. after they are installed
b. after Klem defaults on his rental payments
c. after the lease takes effect
d. after the lease expires
d. after the lease expires
The geographic location of any parcel of land
a. can be changed by removing large quantities of soil and rock
b. can never be changed
c. can be changed because the topography can be changed
d. can be changed only under certain legal circumstances
b. can never be changed
The term improvements, when referring to real estate, would include
a. shrubbery
b. trees
c. sidewalks
d. lawns
c. sidewalks
Which of the following is NOT a test to identify a fixture?
a. intent of the parties
b. size of the item
c. method of attachment of the item
d. adaptation of the item to the real estate
b. size of the item
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
a. severance
b. annexation
c. immobility
d. indestructibility
b. annexation