Real Estate Agent Hardest Quiz: Trivia!
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Do you understand what it takes to be a real estate agent? Would you like to try this quiz? A real estate representative is someone who helps people with either selling their property or purchasing a property. The property is typically a house or some other item. A real estate agent weighs the pros and cons of purchasing a property. If you intend to learn more about what a real estate agent does, check out
this quiz.
- 1.
A BUYER OF A RESIDENCE, PRIOR TO THE CLOSE OF ESCROW, ASKS THE BROKER FOR PERMISSION TO MOVE INTO THE PROPERTY. THE BROKER SHOULD:
- A.
Deny the buyer permission
- B.
Grant the buyer oral permission
- C.
Ask the buyer to sign a lease for the property
- D.
Obtain written consent from the owner
Correct Answer
D. Obtain written consent from the ownerExplanation
Prior to the escrow, the seller is still the owner, therefore, the broker should get written consent from the owner before allowing a buyer to take possession.Rate this question:
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- 2.
AN ALIENATION CLAUSE PROVIDES THAT:
- A.
The principal amount of the loan, plus accrued interest, is due in the event of the sale of the property
- B.
The mortgage is security for a promissory note
- C.
A lien can be placed on the property that takes precedence over a prior recorded trust deed
- D.
None of the above
Correct Answer
A. The principal amount of the loan, plus accrued interest, is due in the event of the sale of the propertyExplanation
Also called Due on Sale. It states that the lender may demand the loan plus accrued interest be paid in full in the event the property is sold. The purpose of this clause is to prevent a buyer from assuming or taking title subject to an existing loan w/o the consent of the lender.Rate this question:
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- 3.
IF A MAN HAS A FREEHOLD ESTATE, WHICH OF THE FOLLOWING WOULD RESULT IN HIS HAVING A LESS THAN-FREEHOLD ESTATE:
- A.
Sale and lease-back
- B.
Selling the mineral rights to a third party
- C.
Giving a leasehold interest for 5 years
- D.
Granting a life estate
Correct Answer
A. Sale and lease-backExplanation
A less-than-freehold estate is a landlord/tenant arrangement. Of the choices offered, only a sale-leaseback would result in a less-than-freehold estate.Rate this question:
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- 4.
BROKER JOJO, AS AN AGENT, SHOWED A PROPERTY TO JUN. JUN SIGNED A DEPOSIT RECEIPT WHICH CONTAINED THE FOLLOWING WORDS: “BUYER TO ACCEPT THE PROPERTY IN AN “AS IS” CONDITION”. BROKER JOJO KNEW THAT THE PLUMBING IN THE PROPERTY WAS IN MAJOR STATE OF DISREPAIR WITH PARTS MISSING, BUT HE DID NOT TELL JUN. THE PROBLEM WITH THE PLUMBING WOULD NOT BE APPARENT TO AN ORDINARY, PRUDENT PERSON. IF JUN SUED THE SELLER FOR DAMAGES FOR FRAUD, THE COURT SUIT WOULD PROBABLY BE:
- A.
Unsuccessful because the “as is” provision in the deposit receipt shows that there is a mutual understanding of possible defects
- B.
Unsuccessful because the deposit receipt specifically state Buyer to accept the property in an “as is” condition
- C.
Successful because the duty to disclose a material fact cannot be avoided by an “as is” provision under the stated circumstances
- D.
Successful because “as is” refers only to obvious defects
Correct Answer
C. Successful because the duty to disclose a material fact cannot be avoided by an “as is” provision under the stated circumstancesExplanation
The Real Estate Commissioner and the courts are very protective of consumers. Therefore, they will not allow an “as is” clause to be valid except for obvious defects, which any reasonable and prudent person could discover.Rate this question:
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- 5.
AN ADVERTISEMENT FOR THE SALE OF REAL PROPERTY PLACED BY A REAL ESTATE BROKER IS PRIMA FACIE EVIDENCE OF FRAUDULENT AND MISLEADING INFORMATION WHEN:
- A.
A misleading map is included in a newspaper advertisement offering a twenty year old single family residence for sale
- B.
The selling price and financing terms are not as stated
- C.
The interest rate on the note differs from its advertised yield
- D.
The name of the development is misspelled
Correct Answer
C. The interest rate on the note differs from its advertised yieldExplanation
Prima facie means “on its face w/o further evidence”. Real estate law specifically states that no place an advertisement concerning a Note with an effective yield that does not also state the rate on the face of the note is PRIMA FACIE evidence of fraud.Rate this question:
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- 6.
WHEN A MORTGAGE COMPANY ADVERTISES A GRADUATED MORTGAGE, UNDER THE TRUTH-IN-LENDING ACT, THE ADVERTISEMENT MUST INCLUDE THE:
- A.
Difference in monthly payments
- B.
Name of the broker
- C.
Name of the lending institution
- D.
All of the above
Correct Answer
A. Difference in monthly paymentsExplanation
The Truth-In-Lending law requires an advertisement concerning a graduated payment loan to distinctly illustrate the increases in monthly payment.Rate this question:
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- 7.
THE FOLLOWING ARE CORRECT STATEMENTS CONCERNING AN OPTION, EXCEPT:
- A.
The optionor must perform if the optionee exercises his option within the period specified
- B.
The optionee must perform if the optionor exercises his option within the period specified
- C.
To exercise the option, the buyer must pay the amount specified in the option
- D.
The consideration for granting the optioned must be actual
Correct Answer
B. The optionee must perform if the optionor exercises his option within the period specifiedExplanation
The question is a negative question asking for a false statement concerning options. Answer “B” states: The “optionee must perform” which is false. The optionee receives and the optionor must perform. The optionee is the one who exercises the option. Answers “A”, “C”, and “D” are all correct. Regarding answer “B” there must be some consideration. It may be money or an act. In a lease option, it often states that there is the option to purchase the property for P1,000,000. The consideration is the leasing of the property. The leasing of the property is sufficient consideration upon the part of the optionee. An option must contain all the terms of the purchase similar to a deposit receipt. At the time of exercise, all that the optionee must do is state: “I will buy according to the option terms.”Rate this question:
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- 8.
THE REAL ESTATE COMMISSION FOR A PROPERTY THAT IS IN PROBATE IS SET BY:
- A.
The real estate
- B.
The decedent
- C.
A court order
- D.
A probate officer
Correct Answer
C. A court orderExplanation
Commissions for property sold in probate are set by the individual court district.Rate this question:
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- 9.
THE VALUE OF THE BEST PROPERTY IN THE NEIGHBORHOOD WILL BE ADVERSELY AFFECTED BY THE PRESENCE OF COMPARATIVELY SUBSTANDARD PROPERTY”, IS A STATEMENT RELATING TO VALUE AND IS KNOWN AS THE PRINCIPLE OF:
- A.
Balance
- B.
Contribution
- C.
Regression
- D.
Progression
Correct Answer
C. RegressionExplanation
The principle of regression states that the worth of a greater valued property is reduced by the proximity of many lesser valued properties of the same type.Rate this question:
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- 10.
WHICH OF THE FOLLOWING TYPES OF LENDERS WOULD HAVE THE GREATEST PERCENTAGE OF AND THE MOST FUNDS INVESTED IN REAL ESTATE MORTGAGES?
- A.
Savings and Loan associations
- B.
Commercial banks
- C.
Life Insurance companies
- D.
Mutual savings banks
Correct Answer
A. Savings and Loan associationsExplanation
Savings and loan associations place a greater percentage of their funds into real estate loans. These loans, namely, are in the single-family dwelling area. As to life insurance companies, they prefer long term, high valued commercial properties. Commercial banks, due to the liquidity requirements, prefer short term loans such as construction loans, although here too, funds are available for the home loan makerRate this question:
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- 11.
AN ADDITION TO LAND RESULTING IN THE FORMATION OF A GRADUAL BUILD UP BY NATURAL CAUSES. THE PARTY WHO WOULD BENEFIT FROM THIS WOULD BE:
- A.
The land owner
- B.
The local government
- C.
The landowner’s neighbor
- D.
None of the above
Correct Answer
A. The land ownerExplanation
The question describes accretion, and the land that accretes from a river belongs to the adjoining landowner.Rate this question:
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- 12.
NO PRUDENT PERSON WOULD PAY MORE FOR A PARCEL OF REAL PROPERTY THAN THE PRICE OF A REASONABLY CLOSE ALTERNATIVE, WHICH IS AVAILABLE WITHOUT UNDUE DELAY”, REFERS MOST NEARLY TO THE PRINCIPLE OF:
- A.
Balance
- B.
Conformity
- C.
Substitution
- D.
Intervention
Correct Answer
C. SubstitutionExplanation
The principle of substitution, in essence, states that “no prudent person would pay more for a parcel of real property than the price of a reasonably close alternative which is available without undue delay”.Rate this question:
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- 13.
SAM INHERITED ROLLING HILLS FROM HIS UNCLE. THE FIRST THING HE DID WITH THE VACANT PROPERTY WAS TO REMOVE ALL THE TOPSOIL, WHICH HE SOLD TO A LANDSCAPING COMPANY. SAM THEN REMOVED A THICK LAYER OF LIMESTONE AND SOLD IT TO A CONSTRUCTION COMPANY. FINALLY, HE DUG 40 FEET INTO THE BEDROCK AND SOLD IT FOR GRAVEL. WHEN SAM DIED, HE LEFT ROLLING HILLS TO HIS DAUGTHER, PAT. WHICH OF THE FOLLOWING STATEMENTS IS TRUE?
- A.
Pat inherent nothing, because Rolling Hills no longer exists
- B.
Pat inherits a large hole in the ground, but it is still Rolling Hills, down to the center of the earth.
- C.
Pat owns the gravel, limestone, and topsoil, no matter where it is.
- D.
Sam’s estate must restore Rolling Hills to its original condition
Correct Answer
B. Pat inherits a large hole in the ground, but it is still Rolling Hills, down to the center of the earth.Explanation
Pat inherits exactly what Sam owned just before his death: a location on the earth’s surface, everything below it to the center of the earth and the space above it toward the heavens.Rate this question:
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- 14.
A TRUE STATEMENT REGARDING FLOOD WATERS IS THAT FLOOD WATERS:
- A.
Refer to water minor depths, either standing or flowing, which do not produce serious surface scour or leave deposits of silt.
- B.
Refer to water on the surface of the land but lower than the water table in the area
- C.
Are deemed the enemy of every affected owner and owner may protect their property by employment any reasonable protective measures
- D.
Are found below the water table, at the water table, and above the water table
Correct Answer
C. Are deemed the enemy of every affected owner and owner may protect their property by employment any reasonable protective measuresExplanation
Flood waters (water from a downpour, river overflowing its bank) one may protect himself against such flood by building a dike, or sand bagging or other methods of diverting the water to other property owners.Rate this question:
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- 15.
WHICH OF THE FOLLOWING IS AN ADVANTAGE OF THE MARKET DATA APPROACH TO VALUE IN THE APPRAISAL PROCESS:
- A.
It provides an accurate forecast of long range values
- B.
Often comparison properties are numerous
- C.
Amenities are easy to compare
- D.
It is the simplest of the approaches to learn and to use
Correct Answer
D. It is the simplest of the approaches to learn and to useExplanation
The market data approach to appraising is the simplest of the three approaches. It is the easiest to learn and to use. It is the oldest approach.Rate this question:
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- 16.
THE FOLLOWING IS TRUE WITH RESPECT TO RIPARIAN RIGHTS IS THAT:
- A.
The riparian must be adjacent to the stream and in the watershed of the stream
- B.
The riparian land owner has the absolute ownership of the adjacent water
- C.
Riparian rights must be expressly stated in the deed to such land
- D.
The ownership of the riparian rights can be determined from public records
Correct Answer
A. The riparian must be adjacent to the stream and in the watershed of the streamExplanation
Riparian is from the Latin which means river. Riparian rights are rights belonging to property that are adjacent to rivers and streams.Rate this question:
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- 17.
SINGLE FAMILY HOME VALUES ARE LEAST PROTECTED IN NEIGHBORHOODS WHERE THERE IS:
- A.
A similarity of income of the owners
- B.
A predominance of residents belonging to the same ethnic or religious group affiliation
- C.
A minimum of change to existing restrictions as a result of legal restrictions
- D.
An increasing mixture of average quality homes with high quality homes
Correct Answer
D. An increasing mixture of average quality homes with high quality homesExplanation
In an area where average quality homes are being constructed among high quality homes, there would tend to be a decrease in the overall neighborhood property values.Rate this question:
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- 18.
WITH REGARD TO APPRAISAL TECHNIQUES, ALL OF THE FOLLOWING ARE CORRECT, EXCEPT:
- A.
The cost approach is difficult to use, due to the great amount of knowledge needed regarding the current economic factors involved
- B.
The cost approach is most effective on new buildings
- C.
The cost approach is generally used when appraising public service buildings
- D.
The cost approach sets the lower limit of value
Correct Answer
D. The cost approach sets the lower limit of valueExplanation
The cost approach tends to set the upper limits of value.Rate this question:
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- 19.
THE BUYER AND THE SELLER OF A HOME ARE DEBATING WHETHER A CERTAIN ITEM IS REAL OR PERSONAL PROPERTY. THE BUYER SAYS IT IS REAL PROPERTY AND SHOULD CONVEY WITH THE HOUSE; THE SELLER SAYS IT IS PERSONAL PROPERTY AND WOULD NOT CONVEY WITHOUT A SEPARATE BILL OF SALE. IN DETERMINING WHETHER AN ITEM IS REAL OR PERSONAL PROPERTY, A COURT WOULD NOT CONSIDER WHICH OF THE FOLLOWING?
- A.
The cost of the item when it was purchased
- B.
Whether its removal would cause severe damage to the real estate
- C.
Whether the item is clearly adapted to the real estate
- D.
Any relevant agreement of the parties in their contract of sale.
Correct Answer
A. The cost of the item when it was purchasedExplanation
Common law standards for determining whether an installation is a fixture – and so to be treated as real property – or a chattel, an item that would not convey – in such a dispute are: the intention of the person installing it; how uniquely related the item is to the property in which it is installed; the damage its removal would cause; the agreement of sale; and the relationship of the parties. The original cost of the installation, although important to one or the other of the parties, is not to be considered in this decision.Rate this question:
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- 20.
A FLOOD HAZARD AND DRAINAGE REPORT MAY BE REQUIRED IN THE FILING FOR THE SUBDIVISION FINAL PUBLIC REPORT. IF A HAZARD EXISTS, THE DEGREE OF HAZARD MUST BE REPORTED. THE THREE DEGREES OF FLOOD HAZARD ARE:
- A.
Below the water table, at the water table, above the water table
- B.
Inundation, sheet overflow, ponding of local storm water
- C.
Frequent, infrequent and remote
- D.
Accretion, avulsion and alluvion
Correct Answer
B. Inundation, sheet overflow, ponding of local storm waterExplanation
This is a statement of fact regarding flood hazards.Rate this question:
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- 21.
WHICH OF THE FOLLOWING ACTIONS OR EVENTS WOULD RESULT IN THE TERMINATION OF A SALES ESCROW?
- A.
Revocation of the escrow instructions by the broker of the seller
- B.
The cancellation of the escrow by either party
- C.
The mutual consent of the parties
- D.
The death of either of the parties
Correct Answer
C. The mutual consent of the partiesExplanation
Escrow instructions are an agreement between buyer and seller, and cannot be unilaterally canceled without the consent of the other. Death would not terminate their agreement, but the instructions would be a contract normally binding upon the heirs.Rate this question:
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- 22.
WHICH OF THE FOLLOWING WOULD NOT TERMINATE AN OFFER TO PURCHASE REAL PROPERTY?
- A.
The offeree fails to accept the offer within the prescribed period given by the offeror
- B.
The offeror communicates notice of revocation after the offeree has properly posted acceptance
- C.
A counteroffer from the offeree
- D.
Death or insanity of the offeror
Correct Answer
B. The offeror communicates notice of revocation after the offeree has properly posted acceptanceExplanation
The offeror communicates notice of revocation after the offeree has properly posted acceptance would not terminate an offer to purchase real property. Once the offeree has properly accepted the offer by posting their acceptance, a binding contract is formed. At this point, the offeror cannot revoke the offer. The offeror's communication of revocation would be ineffective as the acceptance has already been made. Therefore, this action would not terminate the offer.Rate this question:
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- 23.
ALL OF THE FOLLOWING ARE GOOD AND VALID REASONS FOR AN APPRAISER TO MAKE A SEPARATE SITE AND IMPROVEMENT EVALUATION, EXCEPT:
- A.
Applying a residual technique
- B.
To determine building obsolescence
- C.
For taxation purposes
- D.
To determine amount of the appraiser’s fee
Correct Answer
D. To determine amount of the appraiser’s feeExplanation
The appraiser’s fee would have nothing to do with a separate site and improvement evaluationRate this question:
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- 24.
THE REMEDY OF UNLAWFUL DETAINER ACTION IS USED BY OFFENDED:
- A.
Grantors
- B.
Holders of notes in default
- C.
Lessors
- D.
Trustors
Correct Answer
C. LessorsExplanation
The lessor is the landlord who is entitled to the reversionary interest in the property in the event the tenant has breached the lease and refuses to give up possessionRate this question:
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- 25.
A PERSON WHO HELD A LIFE ESTATE LEASED A PROPERTY FOR FIVE YEARS AND THEN DIED. THE NEW OWNERS ORDERED THE LESSEE TO MOVE OUT. THE LEASE WAS:
- A.
Valid until the man died
- B.
Valid for the five years
- C.
Invalid from the beginning
- D.
Invalid unless deceased;s executed confirmed it
Correct Answer
A. Valid until the man diedExplanation
The correct answer is "Valid until the man died". This is because a life estate lease is a type of lease that grants the tenant the right to use and occupy a property for the duration of their life. In this case, the person who held the life estate leased the property for five years but then passed away. Since the lease was tied to the person's life, it would be valid until their death, after which the new owners would have the right to order the lessee to move out.Rate this question:
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- 26.
A BROTHER AND SISTER PURCHASED PROPERTY AS JOINT TENANTS. LATER, THE SISTER MARRIED AND DEEDED HER INTEREST TO HERSELF AND HER HUSBAND:
- A.
The joint tenancy continues to exist in all three persons
- B.
The brother remains as a joint tenant
- C.
The joint tenancy is terminated
- D.
The sister’s deed to her husband is voidable by the brother
Correct Answer
C. The joint tenancy is terminatedExplanation
Joint tenancy requires the four equal unities of time, title, interest, and possession between two or more parties. Once any of the four unities are broken, it can no longer be a joint tenancy.Rate this question:
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- 27.
IN A TYPICAL PERCENTAGE LEASE, RENT IS CALCULATED AS A PERCENTAGE OF:
- A.
Net taxable income of the lessee’s business
- B.
Asset’s of the lessee’s business
- C.
Gross sales of the lessee’s business
- D.
Net sales of the lessee’s business
Correct Answer
C. Gross sales of the lessee’s businessExplanation
A percentage lease is typified by the rent being calculated as a percentage of gross sales.Rate this question:
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- 28.
WHEN LEGAL TITLE IS TRANSFERRED AS THE RESULT OF THE SALE OF REAL ESTATE ENCUMBERED BY A DEED OF TRUST, IT IS ALWAYS NECESSARY:
- A.
To obtain the consent of the beneficiary
- B.
To pay off the beneficiary
- C.
For the grantor to deliver a deed
- D.
To completely refinance
Correct Answer
C. For the grantor to deliver a deedExplanation
Unless the loan documents contain an alienation clause, the buyer may assume the loan. However, whenever real property is sold, the grantor must deliver a deedRate this question:
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- 29.
RECORDED TITLE TO A PARCEL OF REAL PROPERTY WAS VESTED IN MARY WILSON, A SINGLE WOMAN. AFTER HE MARRIAGE TO JOHN ROBERTS, SHE EXECUTED A DEED TO THE PROPERTY ONLY IN THE NAME OF MARY ROBERTS, A MARRIED WOMAN. THE DISCREPANCY IN THE GRANTOR’S NAME IS:
- A.
Immaterial so long as the property is adequately described
- B.
A defect which may cause a cloud on the title
- C.
Cured after the deed is on record for one year
- D.
A defect which could cause separate property of both spouses to become joint tenancy property
Correct Answer
B. A defect which may cause a cloud on the titleExplanation
A cloud on title is a relatively unimportant condition affecting title. The discrepancy in names would cause such a cloud on title.Rate this question:
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- 30.
ABLE OWNED A FARM PROPERTY ON WHICH HE HAD A GROWING CORN CROP. BEFORE HARVEST, HE SOLD THE PROPERTY TO BAKER. IT WAS HIS INTENTION TO HARVEST THE CROP AFTER THE SALE EVEN THOUGH THIS WAS NOT STATED IN THE SALES AGREEMENT. THE FOLLOWING WOULD BE TRUE REGARDING THE CORN CROP:
- A.
Baker cannot claim the crop as it would be considered personal property
- B.
Able’s intent would take precedence over the sales agreement
- C.
Able would have the right to harvest the crop as this was his intention
- D.
The crop would go with the land as it is considered real property
Correct Answer
D. The crop would go with the land as it is considered real propertyExplanation
Growing crops on land are presumed to go with the land when the land is sold unless other agreements have been madeRate this question:
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- 31.
AN EASEMENT ON REAL PROPERTY CAN BE TERMINATED BY:
- A.
A conveyance of the servient tenement to a third party
- B.
Being revoked by the party granting the easement
- C.
An express release from the servient tenement holder
- D.
A release signed by the holder of the dominant tenement
Correct Answer
D. A release signed by the holder of the dominant tenementExplanation
Termination of an easement results from express release which may be a quitclaim deed, signed by the holder of the dominant tenement, or by mutual agreement of the parties involved.Rate this question:
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- 32.
DEED RESTRICTIONS ON A PIECE OF LAND ARE NOT PERMISSIBLE:
- A.
Unless promote public health, safety or welfare
- B.
If they are based solely on aesthetic considerations
- C.
If they become burden on the land owner
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
Deed restrictions restrict the use of the property and are agreed to by the original grantor and grantee. Only when the state exercises its police power do we follow the criteria of promoting the public health, safety or welfare.Rate this question:
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- 33.
WHICH OF THE FOLLOWING IS GENERALLY NOT RECOGNIZED AS A TEST FOR A FIXTURE:
- A.
The time when it was installed on the property
- B.
The adaptability of the object to the property
- C.
The intent of the person locating the object
- D.
The manner in which it is attached to the property
Correct Answer
A. The time when it was installed on the propertyExplanation
This is a negative question that asks which of the choices given is not a recognized test of a fixture. The time in which a fixture is installed is not a test of a fixture. The four tests of a fixture would be adaptability of the object to the property to which it is attached. If you cut venetian blinds for a give window, the blinds are adaptable to those specific windows. The manner of attaching is also a test. If you grout a mirror to a bathroom wall, it shows the intention of making it a permanent attachment. The intent of the person is a key test. Time is not a test.Rate this question:
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- 34.
THE LEGITIMACY OF ZONING LAWS REST UPON:
- A.
The fact that planning boards are local, and thus close to the people they regulate
- B.
The established right of police power of government
- C.
The case of enforcing them
- D.
The fact that their enforcement does not interfere with interstate commerce
Correct Answer
B. The established right of police power of governmentExplanation
Zoning laws have been held by the courts to be a valid exercise of the police power of the city or countryRate this question:
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- 35.
ABLE ADDED SOME CABINETS TO THE HOME HE OWNS. THE CABINETS ARE PERMANENTLY ATTACHED TO THE HOME. THE CABINETS HAVE BECOME REAL PROPERTY BECAUSE ABLE HAS:
- A.
Created an encumbrance
- B.
Incorporated the cabinets into the land
- C.
Attached the cabinets into the chattel real
- D.
Created a lien
Correct Answer
B. Incorporated the cabinets into the landExplanation
By permanently attaching the cabinets to the home, Able has incorporated them into the land. This means that the cabinets have become part of the real property and are no longer considered personal property.Rate this question:
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- 36.
IN ORDER FOR A DEED OF TRUST TO VALID AND ENFORCEABLE , IT MUST CONTAIN A CLAUSE REQUIRING THE TRUSTOR TO:
- A.
Have the property insured against fire and other hazards
- B.
Pay assessment taxes before they become delinquent
- C.
Comply with health laws and police regulations
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
A”, “B”, and “C” might give the lender on a trust deed the right to foreclose, but they do not affect the validity of the deed.Rate this question:
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- 37.
Which of the following is an example of economic obsolescence?
- A.
A house that lacks modern equipment in the kitchen
- B.
A one-car garage
- C.
A house that needs maintenance due to putting it off
- D.
A toxic waste dump in the neighborhood
Correct Answer
D. A toxic waste dump in the neighborhoodExplanation
In the neighborhood is the key phrase, outside the property linesRate this question:
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- 38.
Two brothers owned a property and decided to list it with Agent Tejasi. Thirty minutes before the listing appointment, one of the brothers was called out of town on an emergency. So, a friend signed the listing contract for him. Tejasi had no idea that the person signing was not the owner. The status of the listing contract is:
- A.
Void
- B.
Valid
- C.
Uneforceable
- D.
Voidable
Correct Answer
A. VoidExplanation
Void. The listing must be signed by the parties who have the authority to sell.Rate this question:
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- 39.
You are a real estate agent selling a house. You know that it has rusted pipes and that the seller is keeping this a secret. What is your professional responsibility in this situation?
- A.
You must recommend that the seller disclose the defect. Afterwards, the matter is out of your hands.
- B.
You must make a notation in your file that you have discovered a defect. This is so that evidence will be available if the matter ever becomes a lawsuit.
- C.
If the seller will not disclose the defect, you must tell any buyers yourself, even if this means the sale falls through.
- D.
If the seller will not fix the rusted pipes, you must pay yourself to have them fixed
Correct Answer
C. If the seller will not disclose the defect, you must tell any buyers yourself, even if this means the sale falls through.Explanation
If the seller will not disclose the defect, you must tell any buyers yourself, even if this means the sale falls through.Rate this question:
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- 40.
Negligent misrepresentation occurs when:
- A.
There is intentional misrepresentation of a material fact by a broker in order to take financial advantage of another.
- B.
The agent showing the property exaggerates the property's benefits.
- C.
A broker should have known that a statement about a material fact was false.
- D.
The broker or agent tells the seller to intentional lie about a property defect so they can get a quick sale
Correct Answer
C. A broker should have known that a statement about a material fact was false.Explanation
A broker should have known that a statement about a material fact was false. There are many definitions of the word misrepresentation. The basic definition is that a party made a decision based on information he/she/they thought was true, but it was not. Was it a mistake and no one could have reasonably known? Was it intentional? Was it fraud? Negligent misrepresentation occurs when it is determined that this is information that the licensee “should have known and did not know”.Rate this question:
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- 41.
A person died testate. After an extensive search, no additional heirs were found. The person's real property would transfer by
- A.
Escheat to the state
- B.
By Descent and distribution
- C.
By Demise
- D.
By Devise
Correct Answer
D. By DeviseExplanation
By devise. When a person dies testate, it means the person died with a will. Real property is devised or transferred by the will. If a person dies intestate, or without a will, the laws of descent and distribution are followed. Demise is to give up the right of possession in a lease. (Yes, it also means someone has died.) Escheat means the property reverts to the state when it is classified as abandoned. This may happen when someone dies intestate and no heirs can be found.Rate this question:
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- 42.
Agnes, Zelma and Jayne are sisters and own a property as joint tenants. Jayne sold her share to Maggie. Upon closing, Maggie is a:
- A.
Joint tenant with Agnes and Zelma
- B.
Tenant in common with Agnes and Zelma
- C.
Tenant by the entirety with Agnes and Zelma
- D.
Tenant at will with Agnes and Zelma
Correct Answer
B. Tenant in common with Agnes and ZelmaExplanation
Tenant in common with Agnes and Zelma. Joint tenancy requires the unities of time, title, interest and possession. When Jayne sells her property to Maggie, the unity of time and title is breached. Agnes and Zelma are still joint tenants, but Maggie would be a tenant in common with them.Rate this question:
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- 43.
Physical Characteristics of a Real Estate
- A.
LAND IS IMMOBILE
- B.
LAND IS INDESTRUCTIBLE
- C.
LAND IS UNIQUE
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The physical characteristics of real estate are that it is immobile, indestructible, and unique. Real estate, which includes land and any permanent structures on it, cannot be moved from one location to another. It is also indestructible in the sense that it cannot be destroyed or consumed like other goods. Lastly, each piece of land is unique, with its own location, size, and features, making it different from any other piece of land. Therefore, all of the given options accurately describe the physical characteristics of real estate.Rate this question:
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- 44.
It refers to the acquisition of lots varying ownership, through purchase on expropriation for the purpose ofplanned and rational development and socialized housing program without individual boundary restrictions:
- A.
Land Banking
- B.
Land Swapping
- C.
Land Assembly
- D.
Land Use Plan
Correct Answer
C. Land AssemblyExplanation
Land assembly refers to the process of acquiring multiple parcels of land with varying ownership in order to facilitate planned and rational development and socialized housing programs without individual boundary restrictions. This involves purchasing or expropriating the land to create larger contiguous plots that can be used for specific purposes. This practice allows for more efficient land use and development, as well as the implementation of comprehensive urban planning strategies.Rate this question:
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- 45.
A provision in a mortgage contract which releases the property from the encumbrance when the obligation is fully paid is:
- A.
Automatic Redemption Clause
- B.
Non-liability clause
- C.
Defeasance Clause
- D.
Exculpatory Clause
Correct Answer
C. Defeasance ClauseExplanation
A defeasance clause is a provision in a mortgage contract that releases the property from the encumbrance when the obligation is fully paid. This means that once the borrower has completely paid off their mortgage, the encumbrance on the property is removed, and the borrower becomes the sole owner of the property free from any mortgage-related restrictions or claims. The defeasance clause ensures that the borrower's rights to the property are fully restored upon fulfillment of their payment obligations.Rate this question:
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- 46.
Property held by the owner as inventory or stock in a trade for a buy and sell business, or used on connection withtrade, business or source of income is:
- A.
A. Capital Asset
- B.
B. Ordinary Asset
- C.
C. Fixed Asset
- D.
D. Intangible Asset
Correct Answer
B. B. Ordinary AssetExplanation
An ordinary asset refers to property that is held by the owner as inventory or stock in a trade for a buy and sell business or used in connection with trade, business, or a source of income. Unlike capital assets, which are typically held for investment purposes, ordinary assets are actively used or sold in the normal course of business operations. This distinction is important for tax and accounting purposes, as the treatment of ordinary assets may differ from that of capital assets.Rate this question:
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- 47.
The acquisition of land in advance of actual need based on present value for future planned development is referred to in the Urban Land Reform Law as:
- A.
Land Assembly
- B.
Land Banking
- C.
Urban Renewal
- D.
New Settlement Development
Correct Answer
B. Land BankingExplanation
Land banking refers to the acquisition of land in advance of actual need based on present value for future planned development. It involves purchasing and holding onto land for future use or development, often with the intention of selling it at a higher price in the future. This strategy allows for strategic control over land resources and can be used to promote planned urban development and prevent speculative activity. The Urban Land Reform Law recognizes land banking as a means to ensure efficient land use and promote sustainable urban growth.Rate this question:
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- 48.
An easement created when a person has been using a roadway without permission for over 20 years is called an:
- A.
Easement by prescription
- B.
Easement in gross
- C.
Easement appurtenant
- D.
Easement by necessity
Correct Answer
A. Easement by prescriptionExplanation
An easement created when a person has been using a roadway without permission for over 20 years is called an easement by prescription. This type of easement is acquired through continuous and uninterrupted use of another person's property for a specific period of time. It is similar to adverse possession, where a person can gain ownership of a property by openly and continuously occupying it without permission for a certain period of time. In the case of an easement by prescription, the person gains the right to use a specific portion of another person's property, such as a roadway, without permission.Rate this question:
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- 49.
Permission to use another's property that may be withdrawn at will is:
- A.
An easement appurtenant
- B.
A license
- C.
An encroachment
- D.
A deed restriction
Correct Answer
B. A licenseExplanation
A license is a permission granted by the owner of a property to someone else to use their property. It is a revocable permission, meaning that the owner can withdraw or terminate the license at any time. This distinguishes it from other options listed, such as an easement appurtenant (which is a permanent right to use someone else's property) or a deed restriction (which is a limitation placed on the use of a property). An encroachment, on the other hand, refers to a situation where someone's property extends onto another person's property without permission, so it is not applicable in this context.Rate this question:
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- 50.
The listing must be signed by the parties who have the authority to sell:
- A.
Mortgage
- B.
Note
- C.
Deed
- D.
Sales contract
Correct Answer
C. DeedExplanation
The correct answer is "Deed". A deed is a legal document that transfers ownership of a property from one party to another. It must be signed by the parties who have the authority to sell the property, which typically includes the current owner or owners. The other options listed, such as mortgage, note, and sales contract, are related to the sale of a property but do not necessarily require the signatures of the parties with the authority to sell.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
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Feb 16, 2013Quiz Created by
Zaldyt
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