Real Estate Practice Test: Exam Simulator Flashcards

Real Estate Practice Test: Exam Simulator Flashcards

An owner purchases some stones, sand, and cement and builds a concrete walk on his parcel of real estate. This

walk is:

Real property A listing is a contract between the property owner and the:Principal broker of the broker who took the listing There are three main causes of depreciation. Which one of these finds its origin in social sources which is the basis for the old axiom known in social circles, that 'more houses are torn down than fall down"?Economic obsolescence

Condo's may be:Industrial propertyResort

propertyResidential property All of the above Certain economic principles are of considerable importance in the valuation of real estate. The principle that "no prudent man would pay more for a product than for which he could buy a reasonable duplicate, allowing for no undue

delay" is known as the:

Principle of substitution The sale of real property on a conditional sales contract

ordinarily transfers:

Possession If two corporations and three unrelated individuals take title

as tenants in common in a parcel of Oregon land:The

corporations may sell their shares without regard to the other tenantsIndividuals may sell their shares without regard to the corporationsNone of the co-tenants has the right of survivorship All of the above The act of entering upon another person's real estate

without authority or permission of the owner is called:

A trespass The deed form that creates the greatest potential liability to

the grantor is the:

General warranty deed

A tenancy by the entirety may be created by: A married couple

Which of the following statements is true with, respect to

options? An option is:

Valid if consideration is given even if it is less than $10 There is a material defect in the property which is not noted in the seller's property condition disclosure form. Which of the following statements is true regarding this situation?Common law requires the licensee to disclose the information to prospective buyers A broker is entitled to a commission regardless of who sells the property during the listing period if he/she has which of the following listings?Exclusive right to sell Robert, Tom and Jerry are co-owners of a parcel of real estate. Tom dies and his interest passes under this will to

become part of his estate. Tom was a:

Tenant in common A property manager may deposit trust funds in an

interest-bearing account if he:I. Has the written

authorization of all parties having interest in the fundsII.Deposits the funds in a federally insured bank account Both I and II

Principal brokers must supervise which of the following of brokers?Completion of a property listing agreementCompletion of an earnest money agreementCompletion of a comparative market analysis All of the above Certain contracts are required to be in writing because of

the:

Statute of Frauds Zoning ordinances control the use of private land through several kinds of restrictions. Which of the following is NOT a zoning restriction?Non-conforming uses When a real estate broker asks a principal real estate broker to terminate their business relationship, the principal

real estate broker must:

Send an acknowledgment of transfer to the receiving principal broker without delay Which of the following statements concerning water rights in Oregon is FALSE?A water right may be rendered invalid by one year of non-use In the foreclosure by the county of real property because of nonpayment of taxes, who has the right of possession during the statutory period of redemption?The delinquent taxpayer The disclosure statement used under the Truth in Lending

Act is concerned with the:

Neither I or II If you sell a property for your client and he takes back a

purchase money mortgage in part payment, he becomes a:

Mortgagee In a properly developed community, values are upheld by:Conformity to land use objectives Reed sold his land which included an easement appurtenant for a road, to Simmons. The deed Reed gave to Simmons had a valid legal description, but did not include a reference to the easement. Which of the following is true about this situation?Simmons would possess the same rights as Reed The Oregon Homestead Exemption provides a

homeowner:

With some protection against the forced sale of his personal residence

A quiet title action means:A court suit to remove a cloud on the title

Title insurance in Oregon is:Issued to insure the named

party onlyProtection against false impersonationsNot required by law All of the above An owner of a condo can usually obtain which of the following on his individual unit?I. Title InsuranceII.Homeowner's hazard insurance Both I and II Villa agrees to lease a mountain cabin to Hopkins for the summer months of June, July, and August. Hopkins has

an:

Estate for years Which of the following is NOT a necessary part of a lease?An option to purchase An Oregon real estate broker associated with a principal

real estate broker is responsible for:I. Providing the

principal broker or branch manager with advertising prior to its useII. Promptly transmitting any documents and consideration received by the broker to the principal broker Both I and II

The primary justification for a zoning ordinance is to:Protect the public health, safety, and general welfare of an area A principal broker obtained a signed offer and an earnest money check from a qualified prospect and his spouse.Before the principal broker could present the offer to the seller, the buyer called to say he was being transferred out of town and wanted to withdraw his offer. In this case, the

buyer:

Is within this rights to withdraw his offer If a 160-acre parcel of land is square, the length of one side

would be:

1/2 mile Two appraisers were asked to appraise an apartment property. Both arrived at the same net income but the first appraiser used a capitalization rate of 6% while the second appraiser used a capitalization rate of 8%. The reason that one appraiser would choose a higher capitalization rate

would be due to the fact that the appraiser estimated:

A higher risk All listing agreements entered into by Oregon licensees

must:

State a definite expiration date

An Oregon statutory deed:Neither I nor II

Taxes on real property in Oregon become a lien on:July 1st of the year of assessment Which would cause a deed to be invalid in its inception?Legal incompetence of the grantor All of the following documents could be used in the

foreclosure of a real estate mortgage EXCEPT a:

Indenture deed A properly executed quitclaim deed should always convey:An existing interest in the property A means of acquiring title where the occupant has been in actual, open, notorious, exclusive and continuous occupation of property under a claim of right for the

statutory period is known as:

Adverse possession Possession under a clam of adverse possession must

be:ContinuousHostileOpen and notorious

All of the above Of the following, who most benefits by an acceleration clause in a mortgage or trust deed note?The lender Two parties signed a contract which both knew was for an illegal purpose. Under these circumstances the contract

would be:

Void Deferred maintenance is the:Part of physical deterioration which can be restored by repairs and maintenance A private corporation wants to sell its real property. Who is entitled to sign the employment contract?A person authorized by the board of directors The turning over of land by a developer for a public use is

called:

Dedication Of the following, the largest estate or ownership in real

property is:

A fee simple estate Which of the following is an encumbrance, but not a lien?Deed restriction