Oregon Real Estate Exam Practice Test Flashcards

Oregon Real Estate Exam Practice Test Flashcards Under the terms of an insured mortgage loan, the interest rate is always lower than it would be under the terms of a conventional mortgage.lender is protected against loss resulting from fire or other events damaging the property.borrower is protected against loss of his property if he is unable to make the required mortgage payments.lender is insured against loss should the borrower default.Which of the following is NOT a party to a trust deed?GranteeBeneficiaryTrusteeGrantor Which of the following statements regarding the Real Estate Settlement Procedures Act (RESPA) is FALSE?RESPA regulations cover all residential mortgages.A special information booklet must be provided to the purchaser by the lender.The lender must furnish a good faith estimate of likely settlement charges within three days of the loan application.A uniform settlement statement must be given to the borrower at or before closing.Under the Truth in Lending Act, the disclosure statement for the purchase of the borrower's residence must

include:the amount charged for late payments.annual

percentage rate.the total dollar amount of the finance charge.II and III onlyI and II onlyI and III onlyI, II, and III Which of the following is an example of steering?Leading prospective purchasers to or away from certain areasRefusing to make loans to persons in certain areas Both I and III onlyII onlyNeither I nor II Which of the following statements concerning commissions is true?Agreements regarding division of commission between brokers must be in writing.Exclusive agency listings permit the owner to sell without being liable for a commission.The amount of the broker's commission is established by law.Under no circumstances may a broker receive a commission if a sale was consummated after the listing expired.When does legal title to real property pass from the seller to the buyer?When the deed is deliveredWhen the deed is placed in escrowWhen the closing statement has been signedOn the date of recording of the deed Which of the following is an estate less than freehold?Fee simple absoluteEstate for yearsEstate of inheritanceEstate in remainder The electric company and the telephone company run their lines across the back of Smith's lot. These companies most likely own an easement in gross.an easement appurtenant.a dominant tenement.a servient tenement.Which of the following statements usually applies to an option?An option may be assigned by the person holding it.An option must be recorded.The person who has given the option may not revoke the option before its term

expires.I and II onlyI, II and IIII and III onlyI only Which of the following could not be real estate? Growing treesCoal in the groundLessee's interest under a year-to-year leaseAir rights

The practice of combining a principal real estate broker's personal funds with those of a client is permitted by administrative rules as long as the client has granted authorization.unethical, but not against the law.allowed if the principal broker does not have a clients' trust account.illegal according to Real Estate Agency administrative rules.A parcel of land measuring 220 yards by 220 yards contains

• 1 acres5.0 acres10.0 acres302.5 acresThe Metes and

Bounds System an Acre = 43,560 sq ft(220* 3) * (220 * 3) =435,600 sq ft435,600 sq ft / 43,560 sq ft= 10 acres A well done appraisal, including consideration of all available data, completed by an appraiser of much experience and good judgment, is best defined as legal value.the market value.a scientifically determined value.an opinion.A mortgage is usually accompanied bya title policy.a promissory note.a conditional sales contract.a deed.Which of the following deeds would most commonly be used to remove a cloud from a title?Bargain and Sale DeedSpecial Warranty DeedGeneral Warranty DeedQuitclaim Deed Bob owns a lot. He also owns a sewer easement over the property of his neighbor, Tom. This easement is appurtenant to Bob's lot. Bob sells his lot to Joe without specific mention of the easement in the deed. The easement remains owned by Bob as an encumbered interest.passes to Joe.terminates unless it is a covenant running with the land.reverts to Tom.In the trustee's foreclosure of an Oregon trust deed1. the grantor may cure the default any time up to five days prior to the sale.2. the grantor has a one-year redemption period.I onlyBoth I and IIII onlyNeither I nor II From a lender's point of view, the most important consideration commonly considered in granting a mortgage loan is the neighborhood where the mortgaged property is located.risk of default.condition of the property.availability of mortgage money.A standard form policy of title insurance does NOT protect against loss resulting from failure to deliver an earlier recorded deed.encroachments on the property.forgery in the chain of title.lack of capacity of the grantor.A deficiency judgment is ajudgment which reduces the debt through periodic payments.claim for interest allowed by law.judgment due for the balance of a note remaining due after foreclosure sale.judgment with no means for payment.At the time of signing a land sale contract, the purchaser

receives:

estate for years.legal title.fee simple title.equitable title.To obtain an easement by prescription, the use of the

property must be in a manner which is:open and

notorious.hostile to the owner.continuous for the statutory period of time.II and III onlyI, II and IIII and II onlyI and III only A broker selling personal property along with the real property would have the seller use which of the following to convey title to the personal property?Promissory noteDeedFinancing statementBill of sale A buyer assumes an existing loan when purchasing a single-family residence. The loan assumption on the

closing statement would be shown as a credit to the seller.credit to the buyer and a credit to the seller.debit to the seller.debit to the buyer.