Master Exam 1 - Real Estate Trainers Flashcards

Master Exam 1 - Real Estate Trainers Flashcards Which of the following statements is true concerning

escrow procedures:

When the escrow requirements have been met, the escrow agency changes from a dual agency to a separate agency Private restrictions on real property can be written either as a condition or as a covenant. Which of the following is most

correct concerning such restrictions:

Violation of a condition can result in penalties which are more severe, and can result in loss of title A builder needs a long-term loan of $3,000,000 to develop a new shopping center. Which of the following would

usually be the best source of such finds:

Life insurance companies If a licensee placed the following ad in a newspaper, which of the following would describe the ad? "Three bedroom, two-bath, pool and spa, large lot -- $167,000. 555-1234." This is blind advertising The mortgage insurance on an FHA loan:Protects the lender in the event of default Of the following, which best defines a fee simple estateThe most interest that one can hold in land David gave a grant deed to John transferring title to a house. The title is subject to a condition stating that title will be forfeited if alcoholic beverages are ever sold on the property. John would have which of the following types of

estates:

A fee simple defeasible

To alienate title to property, one:conveys title

Of the following types of deeds, which one would contain

no warranties, expressed or implied:

A quitclaim deed When a broker receives trust funds and places them in a trust account, which of the following statements is most

nearly correct about interest earned on those funds:

The broker may not receive directly or indirectly any interest on funds Broker Davis has had a house listed for sale for nine months without selling it. He knows that the building needs major structural repairs, and he has listed it at 10% above its fair market value. He runs an advertisement in a newspaper that says, "Three bedroom, Victorian. You won't believe the price! Move right in. Davis - 234-5678." This

advertisement is bad because:

Since Davis knows that the property needs major repairs, it is deceptive and misleading.When lenders use the term "debt-income ratio," they are

referring to:

A loan qualifying pool On March 5, a prospective buyer gave a broker his personal check for $1,000 payable to the seller along with an offer to buy the property. He told the broker that the check should not be cashed until March 30. Which of the following is correct?The broker may hold the check, but must tell the seller that it is being held uncashed before the seller accepts the offer To qualify a real property sales contract for recordation, it

must:

Be signed by both buyer and seller and be acknowledged

Who pays the points on a Cal-Vet loan:No one

Richards agreed to list his property for sale with Broker Jackson. In using a standard listing form, Richards

completed Paragraph 10 with the following words: "Delete

provisions in Paragraph 3c above which says, Agency is hereby authorized to accept on my behalf a deposit toward the purchase price in any amount." If Broker Jackson

produced a buyer:

If he accepts a deposit, he holds it as agent of the buyer until the offer is accepted by the seller Which of the following is not essential to the creation of an

agency relationship:

Agreement to pay a consideration Where a buyer withdraws his offer to purchase real

property prior to acceptance by the seller, the:

Buyer is entitled to the refund of the earnest money deposit A prospective buyer would be entitled to damages from a

real estate broker in the event the broker:

Acts in excess of the authority given the broker by the seller Among the choices available to an investor, stocks and bonds, when compared with real property, are usually

thought to be:

more liquid in the marketplace Which of the following would be considered real property?a bearing wall in a single-family house Tyson owns a store building which he leased to Crown for seven years. Crown's estate in the store building is A: Personal property;B: Estate for years;C: A chattel real;D: All of the above Upon discovering that a salesperson in his office was receiving a referral fee from a local lender for every real estate loan the salesperson referred to the lender, the

broker of record in that office took only two actions: He

discharged the salesperson, and he warned all other salespersons in the office never to accept such fees. Based only on the foregoing, which of the following is most nearly

correct:

Both broker and salesperson may be subject to disciplinary action by the Commissioner Once a judgement has been obtained against real property, a plaintiff would obtain which of the following in order to

cause the property to be sold:

A writ of execution Which of the following would not be legally proper for a licensee to do?Keep the client's secret that the roof leaks.An estate is granted to "A" for the life of "X." "A" dies while "X" is still living. The estate Vests in the heirs or devisees of "A." When a valid grant deed is prepared, title passes when it

is:

delivered Agent John has given seller Henry an offer that includes the phrase "All kitchen appliances are to be left with the house and become the personal property of the buyer." Henry accepts all of the other terms of the offer, but objects to leaving the appliances. John crosses out that item and initials it on the contract on behalf of the buyers. He does this despite the fact that the buyers are on vacation and cannot be consulted about this. Such action would most

likely accurately be classified as:

Unlawful conduct When examining a properly-prepared closing statement, the broker would discover that a mortgage assumed by the

buyer would appear as:

A debit to the seller

A deed:does not have to be recorded to transfer title

For more than one hundred years, the Garza family has owned and operated a gold mine on federal land. The only access to their mining claim is across and adjoining parcel.

That parcel is sold to a new owner, who fences off the parcel and padlocks the gate across the access road. The

Garzas would be best advised to:

File a quiet title suit against the new owner to protect their rights