Principles 112 Question Review Chapters 1-25

Front 1

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

Back 1

b. price tends to fall

Front 2

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

Back 2

b. broker

Front 3

Which of the following would NOT affect supply?

a. population
b. construction costs
c. Government controls
d. the labor force

Back 3

a. population

Front 4

Which of the following is NOT a category of the uses of real property?

a. residential
b. developmental
c. agricultural
d. industrial

Back 4

b. developmental

Front 5

Which of the following would NOT affect demand?

a. population
b. demographics
c. wage levels
d. fiscal policy

Back 5

d. fiscal policy

Front 6

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

Back 6

c. degree of standardization of the product's price

Front 7

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

Back 7

d. home inspector

Front 8

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

Back 8

a. price tends to rise

Front 9

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

Back 9

c. property manager

Front 10

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

Back 10

b. demographics

Front 11

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

Back 11

b. real estate tax lien, 1st mortgage lien, creditor lien

Front 12

The relationship between an agent and their client is best described as

a. general
b. leverage
c. reversionary
d. fiduciary

Back 12

d. fiduciary

Front 13

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

Back 13

b. neighbors of the adjoining properties own it together

Front 14

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

Back 14

b. building and land value together equal the land value

Front 15

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

Back 15

c. words of conveyance

Front 16

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

Back 16

d. the owner can appeal to the zoning committee

Front 17

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

Back 17

b. tenancy at will

Front 18

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.

Back 18

a. the sale of a townhouse in a new development

Front 19

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

Back 19

a. remove a cloud from a title

Front 20

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.

Back 20

c. no, the brother must be a licensed real estate broker to receive a commission

Front 21

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

Back 21

d. A VA loan can be granted to an eligible veteran who intends to occupy the property

Front 22

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

Back 22

d. the seller himself finds a buyer

Front 23

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

Back 23

b. race, color, religion, national origin

Front 24

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

Back 24

c. computation and disclosure of the APR(annual percentage rate)

Front 25

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

Back 25

d. all of the above

Front 26

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

Back 26

a. a graduated lease

Front 27

PITI includes all of the following EXCEPT:
a. principle payment
b. interest payment
c. real estate taxes
d. income taxes

Back 27

d. income taxes

Front 28

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

Back 28

c. an appurtenant easement

Front 29

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

Back 29

c. external obsolescence

Front 30

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

Back 30

b. misrepresentation

Front 31

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

Back 31

d. a package mortgage

Front 32

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

Back 32

c. 7%

Front 33

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

Back 33

a. the law requires the complaintant to prove intent to discriminate

Front 34

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.

Back 34

c. condominium ownership

Front 35

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

Back 35

c. the principal and the broker

Front 36

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

Back 36

d. none of the above

Front 37

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

Back 37

d. show her any neighborhood that she specifically requests

Front 38

The best approach for appraising an historical residence is
a. comparable sales
b. capitalization
c. reconciliation
d. cost approach

Back 38

d. cost approach

Front 39

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

Back 39

d. none of the above

Front 40

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

Back 40

c. rights of government to enact regulation regarding the use of property vs. rights of government to take privately owned property for public use.

Front 41

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

Back 41

a. property owner

Front 42

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

Back 42

d. amount of monthly payment

Front 43

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

Back 43

a. ratio of debt to value of the property

Front 44

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

Back 44

c. satisfaction

Front 45

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

Back 45

b. $976.50 debit $976.50 credit

Front 46

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

Back 46

b. became part of the real property by accession

Front 47

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

Back 47

b. open listing

Front 48

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

Back 48

a. married home-sellers may exclude up to $500,000 gain on the sale of their principal residence from capital gains tax

Front 49

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

Back 49

a. blanket mortgage

Front 50

A salesperson's fiduciary responsibility is to the
a. buyer and seller
b. principal
c. real estate commission
d. customer

Back 50

b. principal

Front 51

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

Back 51

a. balloon payment loan

Front 52

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

Back 52

a. a tenant in common with Larry's children and Curly's heirs

Front 53

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

Back 53

a. a non-conforming use

Front 54

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

Back 54

b. $584.82

Front 55

"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

Back 55

b. $179,780.83

Front 56

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

Back 56

d. all of the above

Front 57

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

Back 57

b. state usury laws

Front 58

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

Back 58

c. must leave because the lease was valid only during Barbara's lifetime

Front 59

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

Back 59

b. comparision, income, and replacement cost

Front 60

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

Back 60

d. all of the above

Front 61

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

Back 61

d. all of the above

Front 62

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

Back 62

c. death of the seller

Front 63

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

Back 63

b. loans made by a private endowment fund

Front 64

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

Back 64

b. seller dies prior to closing

Front 65

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

Back 65

a. cost approach

Front 66

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

Back 66

b. give it to the broker for deposit

Front 67

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

Back 67

d. the laws of the state in which property is located

Front 68

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%

Back 68

c. 11%

Front 69

A contract may be defined as any of the following EXCEPT
a. unenforceable
b. lis pendens
c. voidable
d. valid

Back 69

b. lis pendens

Front 70

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

Back 70

d. none of the above

Front 71

Building codes can NOT restrict which of the following?
a. construction standards
b. financing
c. square footage
d. all of the above

Back 71

b. financing

Front 72

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

Back 72

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

Front 73

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

Back 73

d. income approach

Front 74

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

Back 74

b. $63,400

Front 75

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

Back 75

d. all of the above

Front 76

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

Back 76

a. the counteroffer totally rejects Benny's offer

Front 77

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

Back 77

b. an exclusive agency listing

Front 78

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

Back 78

b. $344.90

Front 79

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

Back 79

a. land/installment contract

Front 80

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

Back 80

a. to obey all of the instructions of the buyer

Front 81

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

Back 81

a. stigmatized

Front 82

During the period of time between contract ratification and settlement, the contract is considered
a. executory
b. executed
c. equitable
d. voidable

Back 82

a. executory

Front 83

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

Back 83

c. Bob is the sub-agent; Rich is the agent

Front 84

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

Back 84

b. the owner may rebuild if he obtains a variance

Front 85

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

Back 85

a. an exclusive right to represent buyer agreement

Front 86

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

Back 86

d. all of the above

Front 87

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

Back 87

c. presenting only offers that are within 10% of the asking price

Front 88

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

Back 88

a. this is a violation of Anti-Trust Laws

Front 89

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

Back 89

b. a point increases the yield to the lender

Front 90

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

Back 90

a. the definition of real property

Front 91

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

Back 91

b. the right to exclude the utilities' meter reader

Front 92

According to the law, a trade fixture is usually treated as
a. a fixture
b. an easement
c. personalty
d. a license

Back 92

c. personalty

Front 93

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

Back 93

b. area preference

Front 94

Which of the following is considered personal property?
a. wood-burning fireplace
b. awnings
c. bathtubs
d. patio furniture

Back 94

d. patio furniture

Front 95

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

Back 95

c. trade fixtures

Front 96

Real property can become personal property by
a. severance
b. purchase
c. hypothecation
d. attachment

Back 96

a. severance

Front 97

Which of the following is NOT a physical characteristic of land?
a. indestructibility
b. uniqueness
c. immobility
d. scarcity

Back 97

d. scarcity

Front 98

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

Back 98

d. none of the identified items

Front 99

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

Back 99

a. indestructible

Front 100

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

Back 100

a. the rancher

Front 101

Certain items installed on a premises by tenants and related to their business are called
a. fixtures
b. emblements
c. trade fixtures
d. easements

Back 101

c. trade fixtures

Front 102

Which of the following is NOT treated as personal property?
a. chattels
b. trade fixtures
c. emblements
d. fixtures

Back 102

d. fixtures

Front 103

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

Back 103

a. treated as real property

Front 104

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

Back 104

a. operate as usual

Front 105

All of the following are economic characteristics of land EXCEPT
a. scarcity
b. permanence of investment
c. uniqueness
d. area preference

Back 105

c. uniqueness

Front 106

Generally personal property can be distinguished from real property by its
a. greater variety
b. mobility
c. cost
d. multipicity of use

Back 106

b. mobility

Front 107

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

Back 107

b. crops

Front 108

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

Back 108

d. after the lease expires

Front 109

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

Back 109

b. can never be changed

Front 110

The term improvements, when referring to real estate, would include
a. shrubbery
b. trees
c. sidewalks
d. lawns

Back 110

c. sidewalks

Front 111

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

Back 111

b. size of the item

Front 112

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

Back 112

b. annexation