Real Estate Set

Front 1

A primary feature of property held in joint tenancy is that

Back 1

a maximum of two people can own the real estate.

Front 2

Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher purchase price was obtained later in the afternoon. The broker presented the first offer to the seller that evening. The broker did not inform the seller about the second offer so that the seller could make an informed decision about the first offer. Which of the following is TRUE?

Back 2

The broker has no authority to withhold any offers from the seller.

Front 3

A seller signed a 90-day listing agreement with a licensee. Two weeks later, the seller was killed in an accident. What is the present status of the listing?

Back 3

A)The listing agreement was terminated automatically when the seller died.

Front 4

A man's house has been listed for sale for more than one year and he is very anxious to move into a retirement community. A licensee, who is a subagent of the seller, tells a prospective buyer to make a low offer because she is sure that the seller will accept it. Regarding the licensee's conduct, which of the following isFALSE?

Back 4

She acted appropriately to get the seller's property sold.

Front 5

A seller-landlord has collected the September rent from all five tenants: two pay $345 per month each and three pay $425 per month each. Determine the prorated amount to be allowed the buyer when the sale closes on September 19.

Back 5

$720.50

Front 6

A broker receives a check for earnest money from a buyer and deposits the money in the broker's personal interest-bearing checking account over the weekend. This action exposes the broker to a charge of

Back 6

commingling.

Front 7

On the closing statement of a typical real estate transaction, the buyer's earnest money deposit is a

Back 7

credit to the buyer only.

Front 8

Which course is NOT required to be taken prior to license application?

Back 8

Business Development

Front 9

The section in a purchase contract that would provide for the buyer to forfeit any earnest money if the buyer fails to complete the purchase is known as a provision for

Back 9

liquidated damages

Front 10

A woman bought acreage but never saw it and did not use it, although she regularly paid the real estate taxes on it. Without her knowledge, a man moved his mobile home onto the property, drilled a well for water, and lived there for many years. The man may have become the owner of the acreage if he complied with state laws regarding

Back 10

adverse possession.

Front 11

A broker's office policy is that the salesperson's share of a commission is 65 percent. What is the salesperson's compensation if the sales price of a property is $195,000 and the broker is entitled to a 7½ percent commission?

Back 11

$9,506.25

Front 12

A house was listed for sale at $84,900. The seller received $71,424 after paying the broker a 7 percent commission. What was the selling price of the property?

Back 12

$76,423.68

Front 13

What is the difference between a general lien and a specific lien?

Back 13

A general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property.

Front 14

Which activity is forbidden by the federal Fair Housing Act of 1968?

Back 14

Limitation by religion and nationality in the sale of a single-family home where the property is listed by a licensed broker

Front 15

Which statement is FALSE regarding a capitalization rate?

Back 15

B)

The rate increases when the risk increases.????

Front 16

Which of the following parcels of land is the smallest?

Back 16

5 percent of a township

Front 17

A person owned a parcel of land. Subsequent to the owner's death, the probate court determined the distribution of the land in accordance with the state's statutes. This process is known as

Back 17

escheat

Front 18

A commission rate of 7 percent on a sale of $250,000 would be

Back 18

17,500

Front 19

The state wants to acquire a strip of farmland to build a highway. Does the state have the right to acquire this land for public use?

Back 19

Yes, the state's right is called eminent domain. Condemnation is the actual taking of the property, eminent domain is the right or the process to take it

Front 20

The type of deed in which the grantor defends the title back to its beginning is a

Back 20

general warranty deed.

Front 21

A licensee arrives to present a purchase offer to a seller who is seriously ill and finds the seller's son and daughter-in-law also present. The son and daughter-in-law angrily urge the seller to accept the offer, even though it is much less than the asking price for the property. If the seller accepts the offer, she may NOT be bound by it because the

Back 21

seller was under undue influence from the son and daughter-in-law, so the contract is voidable

Front 22

Assuming that the listing broker and the selling broker in a transaction split their commission equally, what was the sales price of the property if the commission rate was 6.5 percent and the listing broker received $12,593.50?

Back 22

$387,492

Front 23

Tenancy with survivorship means

Back 23

the tenancy interest will pass to the surviving tenants upon the death of one party

Front 24

What is the cost of constructing a fence 6 feet 6 inches high around a lot measuring 90 feet by 175 feet if the cost of erecting the fence is $1.25 per linear foot and the cost of material is $0.825 per square foot of fence?

Back 24

The answer is $3,505. 90 + 90 + 175 + 175 = 530 linear ft; 530 linear ft × $1.25 = $662.50 cost for labor; 530 ft × 6.5 ft = 3,445 sq ft; 3,445 sq ft × $0.825 = $2,842.14 cost of materials; $662.50 labor + $2,842.14 material = $3,504.64 total cost to construct fence.

Front 25

The mixing of trust funds with a broker's personal funds is

Back 25

commingling.

Front 26

An amount that is stipulated in the contract that serves to compensate a seller in the event of a buyer default is known as

Back 26

earnest money.

Front 27

Without her licensed employer being present, what is an unlicensed assistant strictly prohibited from doing?

Back 27

Independently hosting a home-show booth

Front 28

The owner of a secluded area adjacent to an ocean noticed that people from town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for several years. He went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be

Back 28

unsuccessful because the owner's property extends only to the high-water mark and the public may use the land beyond this point.

Front 29

The term improvements, when referring to real estate, includes

Back 29

sidewalks.

Front 30

A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years and a final payment of $24,095. This is what type of loan?

Back 30

Balloon

Front 31

The seller wants to net $65,000 on the sale of his house after paying the licensee a fee of 6 percent. How much must the gross selling price be?

Back 31

$69,149

Front 32

In a settlement statement, the selling price is

Back 32

a debit to the buyer.

Front 33

Grantee is to a deed as devisee is to a

Back 33

Will

Front 34

A buyer agrees to purchase a house for $184,500. The buyer pays $2,000 as earnest money and obtains a new mortgage loan for $167,600. The purchase contract provides for a March 15 settlement. The buyer and the sellers prorate the previous year's real estate taxes of $1,880.96, which have been prepaid. The buyer has additional closing costs of $1,250, and the sellers have other closing costs of $850. How much cash must the buyer bring to the settlement?

Back 34

$17,639

Front 35

When grantors do NOT wish to convey certain property rights, they

Back 35

may note the exceptions in the deed of conveyance.

Front 36

Which circumstance would MOST likely be legal under the provisions of the Civil Rights Act of 1968?

Back 36

A private social club that discriminates against no protected group in granting membership refuses to rent a suite in its members-only vacation facility to a Nigerian family who are not members of the club.

Front 37

A property is sold. The deed of conveyance contains only the following guarantee: "This property was not encumbered during the time the seller owned it except as noted in this deed." What type of deed makes such a covenant?

Back 37

Special warranty

Front 38

If the quarterly interest at 7.5 percent is $562.50, the principal amount of the loan is

Back 38

$562.50x4=$2250 annual interest x.075= $30,000

Front 39

If the borrower paid $189.06 interest last month on a $27,500 loan, what is the interest rate?

Back 39

$186.06 x 12 months = $2,268.72 / $27,500= .0825% P/T=R

Front 40

A broker arrives to present a purchase offer to a disabled woman and finds her son and his wife also present. In the presence of the broker, both individuals persistently urge the woman to accept the offer, even though it is much lower than the price she has been asking for her home. If the woman accepts the offer, she may later claim that

Back 40

she was under duress from her son and daughter-in-law, and therefore, the contract is voidable.

Front 41

A licensee is helping a buyer and a seller fill out a sales contract but is not representing either party. The licensee is a(n)

Back 41

transactional broker.

Front 42

A sales contract was signed by a minor. Which of the following describes this contract?

Back 42

Void

Front 43

Which form of ownership is NOT recognized in Iowa?

Back 43

Tenancy by the entireties

Front 44

A vacant lot that measures 100 feet wide by 125 feet deep is listed at a price of $250 per front foot. The broker will collect an 8 percent commission on the sale. If the lot sells for the full asking price, how much is the broker's fee?

Back 44

$2,000

Front 45

A licensee representing a seller is asked by the client to make sure that the deed does not reveal the actual sales price. In this case, the licensee

Back 45

may ask that a deed be prepared that shows only nominal consideration of $10.

Front 46

If the annual net income from a commercial property is $75,000 and the capitalization rate is 8 percent, what is the property worth if the income approach is used?

Back 46

The income approach is computed by taking the net operating income of the rent collected and dividing it by the capitalization rate (the investor's rate of return). It is most typically used for income producing properties and the formula is:

Market Value= Net Operating Income
Capitalization Rate
Also called the "income capitalization approach".

Answer: 937,500

Front 47

Which of the following persons is required to obtain a real estate license?

Back 47

An auctioneer attempting to close on a farm sale

Front 48

A suit to quiet title refers to

Back 48

the removal of a cloud on the title by court action.

Front 49

The main purpose of police power is to

Back 49

ensure the health, safety, and welfare of the community

Front 50

The type of title insurance that will protect the owner and heirs is called a(n)

Back 50

owner's policy.

Front 51

If a respondent to a Commission hearing requests a continuance, the request must be made no less than how many days before the scheduled hearing?

Back 51

Five

Front 52

The type of real estate ownership that is MOST all-inclusive is a

Back 52

fee simple estate.

Front 53

On receipt of the Commission's order that a brokerage license be suspended, what is its broker required to do?

Back 53

Cancel all listings and property management agreements.

Front 54

A man owned two acres of land. He sold one acre to a neighbor and reserved for himself an appurtenant easement over his neighbor's land for ingress and egress. The man's land

Back 54

is the servient tenement.

Front 55

Of a township of 36 sections, which statement is TRUE?

Back 55

Section 16 lies to the north of Section 21.

Front 56

Which of the following is the BEST way to ensure that there are no encroachments and verify the boundaries of a parcel of land?

Back 56

Get a spot survey

Front 57

To net an owner $90,000 after paying 6 percent commission, the list price would be

Back 57

$95,745.

Front 58

A home valued at $168,500 has just had a 70 percent mortgage loan placed on it. The interest rate is 11.25 percent. The monthly payment is $1,292.22 including principal and interest. What will the principal balance of the mortgage loan be after the next monthly payment is made?

Back 58

$117,763.56

Front 59

Antitrust laws do NOT prohibit real estate

Back 59

salespeople within the same office from agreeing on a standard commission rate.

Front 60

A woman owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser?

Back 60

Appurtenant easement