National - Real Estate Exam Practice Questions Set One Flashcards

National - Real Estate Exam Practice Questions (Set One) Flashcards A sales contract was signed by a minor. Which term describes this contract?a. voidableb. breachedc.dischargedd. void

• voidable

A country music singer who owns a cattle ranch enters into a sale and leaseback agreement with a local dentist. Which statement is TRUE of this arrangement?a. the singer retains title to the ranchb. the dentist receives possession of the propertyc. the dentist is the lessord. the singer is the lessor

• the dentist is the lessor

A woman grants a life estate to her son-in-law and stipulates that, upon his death, the title to the property will pass to her grandson. The grandson's interest is known as

a(n):a. remainderb. reversionc. estate at sufferanced.

estate for years

• remainder

A real estate broker hired by an owner to sell a parcel of real property must comply with?a. any and all instructions of the ownerb. any and all instructions of the buyerc.concept of caveat emptord. law of agency

• law of agency

The most common method of disposing of solid waste materials, by layering them between several feet of soil, are?a. landfillsb. storage tanksc. encapsulationsd.electromagnetic

• landfills

In most suburbs, which method of description would be used today?a. government survey systemb. metes and boundsc. rectangular surveyd. lot and block

• lot and block

in order to measure elevation, you need a?a. recorded platb. correction linec. datumd. range line

• datum

All of the following have been proven to pose health

hazards EXCEPT:a. asbestos fibersb. carbon monoxidec.

radond. lead-based paint

• radon

Functional obsolescence can be created by:a. deterioration

of the drivewayb. an over-improvementc. deterioration of of the property next doord. forces outside the property itself

• an over-improvement

Which situation does NOT violate the federal Fair Housing

Act:a. the refusal of a property manager to rent an

apartment to a Muslim couple who are otherwise qualifiedb.the general policy of a loan company to avoid granting home improvement loans to individuals living in transitional neighborhoodsc. the intentional neglect of a real estate professional to show an Asian family any property listings in neighborhoods other than those with a majority of Asian

residentsd. A widow's insistence on renting her spare bedroom only to another widowed women

• A widow's insistence on renting her spare bedroom only

to another widowed women A parcel of vacant land has an assessed valuation of $274,550. If the assessment is 85% of the market value, what is the market value?a. $315,732b. $320,000c.$1,830,333d. $323,000

• $323,000

The act that ONLY specifies race is the:a. Equal Credit

Opportunity Actb. Civil Rights Act of 1968c. Real Estate

Settlement Procedures Actd. Civil Rights Act of 1866

• Civil Rights Act of 1866

All of the following are used in calculating income rate

value (IRV) except:a. property valueb. rate of returnc. net

annual incomed. depreciation factor

• depreciation factor

which of the following is NOT a specific lien?a. an unrecorded mortgageb. a mechanic's lienc. a judgment lien (usually becomes general)d. a blanket mortgage

• a judgment lien (usually becomes general)

The owner of a house wants to fence the yard for the family pet. When the fence is erected, the fencing materials

become real estate through:a. severanceb. subrogationc.

annexationd. attachment

• annexation

The suffix "or" means:a. to receiveb. to givec. to qualifyd. to

borrow

• to give

The basic principle of the income approach to value is:a.

value divided by rate = incomeb. value multiplied by rate = incomec. income multiplied by rate = valued. rate divided by income = value

• value multiplied by rate = income

Which of the following statements is true?a. a first mortgage is always larger than a second mortgageb. a second mortgage cannot be foreclosed without the consent of the first mortgage holderc. neither of the aboved. both of the above

• neither of the above

Three women owned a house as joint tenants. In the year 2009, one died. Last month, another died. Based on these facts, which of the following correctly describes the remaining woman's ownership interest in the house?a. joint tenancy with the deceased women's heirsb. tenancy in common with the deceased women's heirsc. severaltyd.partitioned tenancy by the entirety

• severalty

An ordinary life estate?a. cannot be soldb. greatest estate in real propertyc. inheritable estated. cannot be "wasted"

• cannot be "wasted"

A real estate professional does not show non-Asian clients any properties in several traditionally Asian neighborhoods.The real estate professional bases this practice on the need to preserve the cultural integrity of Asian immigrant communities. Which statement is TRUE regarding the real estate professional's policy?a. the real estate professional's policy is steering and violates federal and state fair housing laws regardless of motivation.b. because the real estate professional is not attempting to restrict the rights of any single minority group, the practice does not constitute steering.c. the real estate professional's policy in steering, but is does not violate the fair housing laws because cultural preservation is the motive, not exclusion or discrimination.d. the real estate professional's policy has the effect, but not the intent, of steering.

• the real estate professional's policy is steering and

violates federal and state fair housing laws regardless of motivation.