1-2024 Pass YOUTUBE & KAPLAN Exam Questions PDF

1-2024 - Pass YOUTUBE & KAPLAN -TO PASS EXAM If an attorney sends money to an agent for a referral, how is it classified? Illegal (kickback). What does RESPA not regulate? Rates. What does the Fair Housing Act require regarding subprime l...

1-2024 - Pass YOUTUBE & KAPLAN -TO PASS EXAM If an attorney sends money to an agent for a referral, how is it classified? Illegal (kickback). What does RESPA not regulate? Rates. What does the Fair Housing Act require regarding subprime lending? Nothing; they are not obligated to lend. What is it called when the seller delivers the deed and the buyer pays? Closing. Which approach considers depreciated value? Cost approach. What allows issuing a building permit despite restrictions? Easements not enforced by authorities. What is required for a valid real estate agency relationship? Written agreement. What type of mortgage allows monthly payments based on equity? Reverse mortgage. In contracts, what prevails? Written parts over printed parts. What can a lender do with a chattel mortgage? All of the above. What is generally a broker? Fiduciary of the seller. What must a broker do with an open listing? Notify the seller. What is true about business opportunities? All are true. When is a broker reimbursed for expenses? If authorized by the principal. What is the main justification for zoning ordinances? Promote public health and safety. What happens to a deposit if the seller instructs to return it? The broker must return it. What does a liquidated damages clause mean? The seller's claim is only $500. What must a broker do with a second offer? Present it immediately. What factors most affect market offers? Government financial policies. Which method allows for more depreciation in the first year? 200% declining balance method. What financing option allows Daniel to pass costs to buyers Interim loans from institutional lenders. How is a new well and pump assessed for taxes? Improvements. What most influences real estate demand? Wage levels and employment. What unit do joint tenancy and tenancy in common have? Equal right of possession. What does a subordination clause in a trust deed allow? Future loans to have priority. What turns capitalization into an appraisal? Net income into market value. What legal action is taken for breach in a land contract? Quiet title action. What does a subordination clause in a trust allow? Priority to later liens. What can't a hardware store owner use as collateral? Stock for sale. What is required for a valid escrow deposit? Binding contract and conditional delivery. If the loan-to-value ratio is low, what is true? Equity is high. Why do sellers hesitate to cancel fire insurance? Short-term cancellation rates are high. What can be assumed about a minority buyer interested in a property? They are interested in that property. What are released funds in construction financing? Mandatory draws. What is true about a grant deed? A reconveyance deed is used when paying off a loan. What is not necessary for contract formation? Performance. What does debt-to-income ratio refer to? A tool for loan qualification. What can a client do if there's no acceleration clause in their contract? Sell or assign rights. What approach is used to value land? Market data approach. What indicates a homeowner receives their own tax bill? They bought a condominium. Who is more likely to sue for specific performance? The buyer. When are mills most commonly used? In property tax assessment. What is the difference between market value and debt? Equity. What is the first step in eminent domain? Attempt to buy the property. If a buyer delivers cash as earnest money, what does it represent? Accounting. What happens if a "time is of the essence" clause is not acted upon promptly? May be considered in breach. How is a house in disrepair described? Incurable depreciation. What is the civil penalty for the first violation of fair housing laws? Up to $50,000. What estate does a deed without specification transfer? Fee Simple Absolute  What includes possession, control, and enjoyment? Bundle of rights What estate does Cynthia hold if Bernice has no heirs? Remainder Estate What interest does the grantor have in a life deed to Jonathan? Reversionary Interest For what purposes can a life estate be granted? All of the above Which is not a freehold estate? Leasehold estate What right is not included in fee-simple ownership? Transfer ownership after death What is the hospital in a life estate gift scenario? Grantee What can't a life estate owner do? Sell the life estate interest What type of interest does a widow have in the family home? Life estate What is true about a life estate? Life tenant pays taxes and maintenance. What describes a person's interest in real property? Interest in land What is the return of land to the grantor called? Reversion How is an estate vested in a grantee until marriage classified? Fee simple, determinable Which is an example of a less than freehold estate? Leasehold estate How is estate in real property best described? Legal interest or rights in property. What provides strong assurance of free simple ownership? To have and to hold forever" Who selects the administrator of an estate? The court Which characteristic does not describe a fee simple estate? Transferred upon the death of the owner What is a man’s death without a valid will called? Intestate What can't a woman with a fee simple estate do? Modify or alter the property What type of estate is described if a farmer sells land to a railroad with a condition? Defeasible estate What refers to the largest estate in real property? Fee simple estate Who is a non-freeholder? Leasehold estate What action is not permitted for the grantor of a life estate? Revoke the life estate at any time Where should a licensee go for encroachment questions? Surveyor's office What is the basis for claiming a right of re-entry for a property? Breach of contract What is an example of personal property? Car What is typically categorized as personal property? Furniture What is the best definition of real property? Land and everything permanently attached What category do easily movable objects fall under? Chattels What should a seller deliver along with the deed? Removable items mentioned in the contract Which is not considered a fixture in real estate? Freestanding microwave What is the most significant factor in determining a fixture? Method of attachment What is an adjustable rate mortgage allowing conversion to fixed rate? Convertible ARM What describes personal property? Chattels What is literal property situated on? Coastline What are improvements in real estate associated with? Building upgrades What includes rights to use, possess, and enjoy property? Bundle of rights What is the appropriation of land for public use? Dedication How to determine riparian rights inclusion? Reviewing the deed How is property boundary altered? Land survey Who is a riparian owner? Someone owning land adjacent to a river What does real estate exclude? Personal belongings and chattels What do riparian rights refer to? Rights to use water from a river What is the term for land removal due to stream change? Avulsion What must a landowner selling a farm provide? Valid legal description What is a woman receiving property through a will called? Devisee What describes gradual soil loss from real estate? Erosion Which is not considered an improvement? Growing natural vegetation What type of property is typically not real property? Vehicles How are riparian rights best described? Rights to access water from a river What is a right that transfers with property ownership? Appurtenance What does "fee" signify in real property? Ownership interest How are air rights best described? Rights to the space above the ground What crops require annual planting? Annual crops  What rights automatically transfer with land conveyance? Appurtenant rights Which is not considered real property when affixed? Vehicle What happens to a man's property if he dies testate? Partially to the son and wife What is a man who makes a will called? Testator What are ceiling tiles in a building considered? Fixtures What does a devisee receive? Real property What does intestate mean? To die without a will How is real property conveyed by a codicil? By testamentary disposition What does probate refer to? Distribution of assets after death What is a devise in real estate? Leaving property in a will How does property pass if a person dies intestate? Determined by court based on laws What happens to property with no heirs after intestate succession? Escheat to the government What happens to property when a person dies testate? Transferred to beneficiaries in the will What is not personal property in a will? Real estate How can title to real estate be transferred upon death? Will What does escheat refer to? Reversion of property to the government Who is last to receive payment in probate? Beneficiaries Which word does not belong in the group? Insurance What is a buyer defaulting on a loan described as? Acceleration clause Which document does not transfer interest in real property? Lease agreement Who receives title if the probate court invalidates a will? State appointed administrator Who typically selects the executor of an estate? The deceased in their will What happens to a farm if a man dies without a will? Escheat to the state government When do property owners have riparian rights? When adjacent to a river What happens to property when someone dies testate? Transferred per the will What is not true about a party wall? Either owner can modify it without permission What is the primary purpose of the Uniform Commercial Code? Standardizing commercial transactions What best describes the difference between administrator and executor? Administrator is appointed, executor is named in the will What economic concept did the owner use for a doughnut shop? Location advantage Where would you find the four unities of title? Joint tenancy What does the zoning ordinance for building height represent? Down zoning What allows lenders to demand repayment if property is sold? Due on sale provision What is a table showing mortgage payment distribution? Amortization schedule. What is true about riparian water rights? Riparian owners have equal rights to use the water. What entry is made when a buyer assumes a tax escrow account? Debit to the buyer and credit to the lender for the tax escrow amount. What can Tom’s creditors claim regarding his farm? Tom's creditors can claim his share of the farm. What can Jane do after discovering John's fraud? Jane can cancel the contract and seek legal remedies. What is required for a deed to be valid? All of these. What type of ownership is established with a cooperative? Cooperative ownership. What does a mortgage represent? Borrower's promise to repay the loan. Who owns the property after C's death if A, B, and C were joint tenants? A, B, and D. What type of financing involves a deed from the seller? Land contract. What is the first month's interest on a $25,000 loan at 9%? $187.50. What is true if a deed is signed but not delivered until the next day? Grantee has equitable title but not legal title. What principle likely caused the buyer not to buy? Substitution. What could happen if a broker misrepresents property? Any of the above. What must an owner do to convert a building into condominiums? File a map with the city. What does a trust deed convey? All of the above. What should Broker Shaw enter for the seller's property? Buyer to assume existing loan. Who is a third party with a complete promissory note? Holder in due course.  What must an owner do for an FHA appraisal? Have a lender apply for a conditional commitment. What happens if a buyer defaults on a loan? Acceleration. What is the classic definition of real property boundaries? Use of airspace extending to the center of the Earth. What is the clause that makes a loan due upon default? Acceleration clause. What happens when commodity supply increases? Price tends to drop. What can the buyer demand if their purchase offer isn't accepted? Return of his deposit. What is it called when one party offers to fulfill their contract obligations? Tender. What can someone do if discriminated against? Private action in court. How do written parts of contracts compare to printed parts? Written parts take preference. What can a lender with a chattel mortgage do? All of the above. What is true about real estate brokers? None of the above. What should a broker do for an open listing? Notify the seller of the prospect's identity. What is true about business opportunities? All are true statements. When can a broker be reimbursed for expenses? If authorized by the principal. What is a primary justification for zoning ordinances? Promote public health and safety. What should a broker do if the seller wants to return a deposit? Return the deposit and may sue the seller. What is the result of a liquidated damages clause in a contract? Unsuccessful if the seller agreed to accept $500. What should be done with a second offer received? Submitted immediately. What is a mortgage that can be assumed by the buyer? Assumable mortgage. What does vested mean in terms of funds? Can use a portion but must pay taxes. Who is a fiduciary controlling property for another's benefit? A trustee. What would a title search show? Clouds. What is an organization managing borrowers' payments called? A servicer. What happens to ownership in tenancy in common upon death? Ownership does not pass to survivors. What is third-party origination in lending? Using another party to handle mortgages. What are the categories of closing costs? Non-recurring and prepaid. What is a sell leaseback? Deeding property to a buyer and leasing it back. What is a first right of refusal in property agreements? Owner gives another party the first opportunity to purchase. Three brokers agreed on not let a third broker show any of their listings. This action would be regarded as A group boycott. The relationship of ethics to law is that b. ethics tends to precede the law. Which would be considered nondiscriminatory in an advertisement for a rental? d. None of these. 60 A broker widened the doorway restroom to accommodate a wheelchair. This was to comply with the b. Americans with Disabilities Act. The Civil Rights Act of 1866 specifically covers what type of discrimination? Race. A broker showed buyers homes in African American and racially mixed neighborhoods, also in predominantly Caucasian areas only if the prospects requested. The broker’s action would be described as All of these. A broker refused to show a young Hispanic family a condominium which they had inquired. The development has an age exemption because all occupants are 55 years of age or older. A landlord can properly refuse to accept an applicant because the applicant None of these. Specifically prohibits discrimination in business establishments is the Unruh Act. Which action with trust funds violates the law? Placing trust funds in the care of a bonded employee. Statements regarding an agent’s duty in a real estate transaction is TRUE? All of these are true. Statements regarding agency disclosure is TRUE? Neither of these is true. Which seller(s) must provide a Real Estate Transfer Disclosure Statement? The seller of a 4-unit apartment building.