FREE REAL ESTATE AND STUDY GAMES ABOUT GEORGIA

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FREE REAL ESTATE AND STUDY GAMES ABOUT GEORGIA

REAL ESTATE EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -325 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Conditional Precedent

Answer:

New owner will not obtain possession until they meet a certain criteria,

Question 2: Unenforceable Contract

Answer:

A contract that a court would not allow or would not uphold.

Question 3: First Right of Refusal

Answer:

The right to match or better an offer before the property is sold to someone else. Protects the tenant from having a rental property sold without being able to match the offer.

Question 4: Hypothecation

Answer:

The borrower retains the right to possess and use the property while it serves as collateral. Opposite of pledging.

Question 5: A seller has rejected offers of $152,000 and $151,000. Another offer is presented from a cooperating broker who is representing a buyer. This offer is for $150,000. Which action by the listing broker is MOST appropriate?

Answer:

Present the offer with a new market analysis.

Question 6: Lis Pendes

Answer:

Written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office.... Latin for "suit pending".

Question 7: Broker

Answer:

A person who provides acts of licensure for another for compensation; one who acts an agent for others in negotiating contracts or sales

Question 8: Party Wall Easement

Answer:

Easement that exist when a single wall is located in the lot line that separates two parcels of land. The wall may be a fence of wall of a building.

Question 9: Nonjudicial Foreclosure

Answer:

Doesn't go to court and is not heard by a judge. It is conducted by the lender (or trustee) in accordance with provisions in the mortgage and state law.

Question 10: Beneficiary

Answer:

One for whose benefit a trust is created; The lender in a deed of trust.

Question 11: Plottage value

Answer:

The increased value of the large parcel over the sum of smaller parcels

Question 12: Transferability (Real Estate)

Answer:

Marketable Title (IF title has defect then lowers the value of the property

Question 13: Chain of Title

Answer:

Sequence of historical transfers of title and runs from the present owner back to the original owner of the property.

Question 14: Principal of Substitution

Answer:

Present Value of a property is influenced by what a person would have to pay for a reasonably desirable substitute.

Question 15: Contract for Deed

Answer:

Tool that can allow buyers who either don't qualify for traditional lending options or who want a faster financing option to purchase property. The seller retains title until the balance is paid; the buyer gets legal title once the final payment is made

Question 16: Judicial Foreclosure

Answer:

Taking the matter for court of law in the form of a lawsuit that asks the jusdge to foreclose the borrower.(GA)

Question 17: Parties Involved in Liens

Answer:

Lienor (holding the lien, i.e mortgage lender) and lienee (party whose property is subject to the lien)

Question 18: Negative Amortization

Answer:

When monthly mortgage payments are not sufficient to cover interest due to unpaid interest is added to principal.

Question 19: Relationship to the party (MARIA)

Answer:

The relationship of the item(s) to the party, like if a retail store bolts down shelving units and then takes them back when selling the property. The store needs the shelves to operate, however, the flooring would have to be fixed.

Question 20: Option Contract

Answer:

A person has a right, but not an obligation to perform under agreed upon terms, price, and time period.Unilateral contract. Buyer is the optionee and seller optionor.

Question 21: UFMIP (Up -Front Mortgage Insurance Premium)

Answer:

One time charge of FHA for insuring the loan. 1.75% of loan and annual premium 1.35% of loan balance added to monthly payment ends when owner had 22% equity in home.

Question 22: Concurrent Ownership

Answer:

Ownership by two or more persons at the same time. Types: joint, in common, entirety and community property

Question 23: Attachment (MARIA)

Answer:

How the object is affixed to the land. Physically: cement, bolts, nails, etc. Legally: like remote for the garage door opener

Question 24: Granting Clause

Answer:

The deed must clearly state the intention to convey the property from the grantor to the grantee.

Common Wording : grant, sell, convey.

Question 25: CBS

Answer:

Comparable Better Subtract