Real Estate Practice Test Part 3

What kind of relationship exists between an agent and a principal?

In what form of co-ownership does a deceased owner's share go to their heirs?

When using the term estate with respect to property rights, it

In a warranty deed the covenant of quiet enjoyment means

A contract that depends on the actions of the parties as evidence of an agreement is referred to as

Various allergic and respiratory symptoms that develop in an office building and then persist even after leaving the building may be

The Certificate of Reasonable Value is a requirement of what type of loan?

You give your aunt the right to live in your second home until your cousin dies. You've likely given her

When rent from an investment is used to pay off an amortized mortgage it's called

An index is a feature of what type of mortgage loan?

Typically, individual on-site sanitary waste disposal systems are sized by the number of

In analyzing a possible real estate investment, potential gross income minus vacancy and collection loss minus operating expenses equals

Another name of the estoppel certificate is

A combination REIT can invest in

A property manager analyzing a building's risk may recommend all except which of the following?

What kind of lease is typically used in an office building?

A tenant rents an apartment from a landlord. The tenant pays rent and the landlord pays all the expenses. This is

In a condominium you generally own your unit

A property management's payment model should not be based on

A real estate broker who obtains special permission from the town to use part of his house as a real estate office may have his house appraised for

Transferring risk is usually associated with which aspect of risk management

Liability that is limited to the investment does not apply to

The fact that you could own an office building but rent it to someone else is explained

Borrower Sam gets a loan from a bank to buy a piece of property and offers the property as security for the loan. Which of the following is true?

Several people are involved in most real estate transactions. The duty of loyalty requires you to put their interest in what order of priority?

Landlord A rents space to Tenant B. Tenant B agrees to rent the same space to Tenant C. This is most likely

Tenancy in common owners always have

Can a new owner force a tenant to renegotiate an existing lease when he takes ownership of the property?

A buyer asks you to show them homes in a Christian neighborhood.

The type of property descriptions that use directions and distances is called

The person for whom a will is prepared is known as

Sally owns a house that she will allow her sister Fran to live for the rest of Fran's life. Upon Fran's death the house goes to Sally's children. Which of the following best describes the interest Fran has in the property?

Because there's significant Jewish population in a particular community, two multiple-listing organizations have been established - one Jewish and one non-Jewish. Real estate agents may belong to one but not both.

A person who buys the interest of someone who owns property in joint tenancy becomes

A seller can be

A source of money to clean up major environmentally polluted properties was originally created by

Your seller client needs to sell his property quickly to take a job in another city. What do you do with this information?

A real estate agent

The best definition of tenancy is

The fact that equal amounts of depreciation are taken every year is referred to as

You own property on a river that has regular commercial boat traffic. What rights do you most likely have with respect to the water?

You sign an option agreement to purchase some land while a zoning change is being sought. Which of the following is true?

When a property owner sues the government because an action it's taken reduced the owner's property value, they will claim what as a basis for the lawsuit?

All other things being equal, what characteristic of real estate makes location the most important value factor?

Joe rents office space from Fred. What type of interest does Joe have?

A Portuguese couple looking for a house asks a real estate agent to show them houses in Portuguese neighborhoods. Which of the following is correct?

The formula for estimating a property's value by comparing similar properties and making adjustments is

Joe, Sam, and Fred are joint tenants in a piece of property. Joe sells his interest to Bob. Bob now has what relationship to Sam and Fred?

A real estate broker generally acts as what type of agent?

The fine for a third violation of the federal Fair Housing Act can be as high as

Although a property management agreement can be for any length of time, the generally recommended minimum is

A real estate investment that works like a stock market investment is probably

You buy the smallest house in a neighborhood of larger, more expensive homes. What economic principle will most likely affect the value of your house?

A subdivision is zoned for one acre lots. The town agrees to allow the developer to build all the houses on quarter-acre lots and leave the remaining land in open space. The developer is likely being subject to

The city needs your property for a road widening but you don't want to sell it. The city probably will take it through its power of

Capital gains is calculated using

A homeowner refuses to rent an apartment in his two-family house to an Asian American family. While of the following is true regarding this action with respect to fair housing laws?

Which program requires registering various types of underground storage tanks?

Which of the following types of information does not have to be disclosed to the seller?

Broker A and Broker B, who have real estate agencies on opposite sides of town, meet at the beginning of the year and agree that each one will handle sales only in his part of town and not interfere with sales in the other broker's area.

A judgement lien is placed against you after you lose a court case for an accident that occurred at your home. This means that the lien is placed against

At what vacancy rate is potential gross income calculated?

The assessment ratio can be calculated by

Which of the following is true for an independent contractor working for a broker?

Seller Sara agrees to let Broker Ben keep any amount over the $200,000 that she needs if he sells her house. This is called

In a real estate investment, which of the following is correct with respect to risk and expected return?

A contract for the sale of property is said to be

In an estate appraisal for tax purposes, what date is used as the appraisal or valuation date?

The loss of the right to enforce a deed restriction because of a failure to enforce that right within a specific time frame is called

A tenant refuses to leave an apartment after the expiration of the lease. The landlord - continues to accept the tenant's rent and gives the tenant permission to stay but does not have the tenant sign a new lease. The tenant may be said to have

A landlord refuses to repair the broken furnace in an apartment building in the middle of winter. The situation may result in

Reconciliation in appraising involves

What is negative amortization?

Harry as a new grandson a year after he writes his will and wants to leave him a special gift. To make this change to the will, he most likely executes

The right of a husband to a portion of his wife's property is called

All other things being equal, which of the following is worth more in tax savings?

Joe and Sam jointly own an apartment building. They can't agree on anything, including how to dissolve their partnership. Joe finally files a suit for

Joe is Mary's seller client. Fred is Sally's buyer client who is interested in Joe's house. Based on this information, which of the following relationships is accurate?

A building whose expenses are higher than its income is described as having

A real estate broker takes a listing to sell someone's house. What is the relationship between the broker and the seller?

The owner of a two-family (duplex) house with two tenants might want to put what clause in the lease that would allow the new owner to evict either or both of the tenants.

Lenders can get protection when making a low down payment mortgage loan from all of the following except

A division of a community along geographic lines for purposes of listing homes for sale by two salesperson working for the same broker is

The amount of compensation received by a property manager is

Which of the following would be unacceptable under the federal fair housing law?

Which one of the following is not a method by which to estimate a property's value?

Receiving back the property you gave in a life estate when that life estate ends is best described as

An easement by prescription is created by

Which of the following is true?

A deed conveying title to property from a trust is called a

Which of the following is not a type of depreciation used in the cost approach?

The number of bedrooms most likely - determines

Which of the following is not necessary for a valid deed?

In the direct sales comparison approach, what type of adjustment should you make when the comparable is better than the subject

A town's property tax rate is typically determined by

What type of loan is expected to convert to a conventional mortgage in a relatively short time?

The method of estimating replacement or reproduction cost that requires you to know the original cost of the building is

Mom and Dad help you buy a house by lending you some money. They don't want any payments right away but tell you taht when you sell, if you make profit, they'll take a portion of the profit as payment of the loan. You have

The primary duty of a property manager is to

Which type of insurance is used to insure against rent being stolen by an employee of a property management company?

Fiduciary relationship (agent/principal)

Tenancy in common

Estate (property rights)

Covenant of quiet enjoyment (warranty deed)

Implied contract

BRI (property)

Certificate of Reasonable Value (loan)

Life estate pur autre vie

Equity buildup (rent/mortgage)

Adjustable-rate mortgage loan (index)

Sanitary waste disposal sizing

Net operating income (real estate investment)

Estoppel certificate (reduction certificate)

Combination REIT

Property risk analysis (management)

Net lease

Gross lease

Condominium ownership

Property management payment model

Appraisal of a real estate office

Risk management transfer

Limited liability (partnership)

Bundle of rights theory

Mortgagor/mortgagee

Duties of loyalty in real estate

Sublease agreement

Tenancy in common sale