Salesperson Pre-License Mid-Term Extra Review

Salesperson Pre-License Mid-Term Extra Review

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A salesperson paid an hourly wage and expected to be in the office from 8 a.m. until 4 p.m. to answer phones is probably a(n): Independent contractor Employee Contract agent Associate broker

2. A contract that depends on the actions of the parties as evidence of an agreement is referred to as Unilateral Bilateral Implied Express

3.  The test done to locate where to place a septic system is called A depth test A soils test A percolation test An absorption analysis

4.  You own property on a river that has personal boat traffic.  What rights do you most likely have with respect to the water? You own to the centerline of the river You have no rights to the river You have rights to use all of the water and own to the center of the river You can use the water and own the land under the water to the midpoint of the river, but the state owns the water

5.  When calculating capital gains, what is subtracted from the selling price? Depreciation Capital investment Operating expenses Adjusted basis

6.  A real estate broker generally acts as what type of agent? Universal agent Special agent General agent Ratified agent

7.  What type of notice is provided by the recording of a deed in the public records? Actual Inquiry Constructive Real

8.  The landlord’s interest in a lease is called: The leasehold interest The leased fee interest The gross lease interest The possessory interest

9.  Which of the following is false? Liens are encumbrances All encumbrances are liens Easements are encumbrances Deed restrictions are a type of of encumbrance

10.  In what form of ownership does the owner get shares in a corporation rather than a deed? Condominium Planned unit development Townhouse Cooperative

11.  While representing an owner selling his property, you find a partial exemption of 10 percent against the assessment because the owner is a veteran.  Assuming the successful buyer is not a veteran and the tax rate does not change, what would the new owner’s taxes be relative to the previous owner’s tax assessment? Higher Lower The same Not enough information given to determine

12.  What is the area in acres of a piece of property that is a one mile square? 640 320 160 80

13.  Because of the independent contractor status of most real estate salespeople, a broker Should not bother with a policies and procedures manual Is not responsible for salesperson’s actions Is responsible for his salesperson’s actions only with respect to fair housing law violations Need not withhold Social Security taxes unless they are employees

14.  A retail store tenant pays $3,000 a month rent plus a portion of gross sales.  This rental arrangement is most likely A straight lease A net lease An index lease A percentage lease

15.  Receiving back the property you gave in a life estate when the life estate ends is best described as Conveyance Transfer Reversion Remaindering

16.  A few years ago you bought an investment property for $100,000.  You made $10,000 worth of improvements and took $6,000 in depreciation.  You sell the property for $120,000.  What is the capital gain? $20,000 $16,000 $10,000 $4,000

17.  A judgment lien is Voluntary and specific Voluntary and general Involuntary and specific Involuntary and general

18.  Harry has a new grandson a year after he writes his will and wants to leave his grandson a special gift.  To make this change to the will, Harry will most likely execute A new will A codicil A devisement A descent

19.  Inducing people to panic sell by telling them that a “lower-class immigrant group” is moving into the neighborhood is called Steering Redlining Canvassing Blockbusting

20.  What is the most likely explanation when you see the words “for love and affection” as the consideration in a deed? The grantor and grantee are related The grantor and grantee want to keep the actual selling price of the property secret The grantor and grantee was represented by the same real estate agent The grantor gave the grantee the property as a gift

21.  You’re selling a rectangular piece of property that measures 99 feet by 100 feet.  What part of an acre is this property? .75 .50 .25 .10

22.  An agent representing both a seller and a buyer would be practicing Single agency Dual agency Exclusive agency Transaction agency

23.  The law governing how heirs inherit property when the deceased has no will is called the law of Descent and distribution Devise Testate Escheat

24.  A tenant refuses to leave a rental property after the expiration of the lease.  The landlord continues to accept the tenants rent.  The tenant may be said to have A tenancy at law A tenancy at sufferance A tenancy by the entirety A periodic tenancy

25.  A real estate broker takes a listing to sell someone’s house.  What is the relationship between the broker and the seller? Agent-principal Client-customer Agent-customer Principal-principal

26.  A real estate sales contract must be in writing because of what law? Uniform Commercial Code Statute of Frauds RESPA Anti-trust

27.  What document do you check to determine the amount of insulation needed in a new house? Zoning ordinance Deed restriction Building code Subdivision regulations

28.  Ownership by one person is called Tenancy by the entirety Tenancy by severalty Tenancy in common Joint tenancy

29.  The process by which a will is validated is called Surrogacy Execution Validation Probate

30.  The period of time after a tax sale during which a property may be redeemed is called The statutory period of redemption The equitable period of redemption The laches period of redemption The lien payment period

31.  A warehouse rents for $0.60 per cubic foot per year and measures 200 feet wide by 300 feet long by 15 feet high.  What is the monthly rent? $36,000 $45,000 $540,000 $900,000

32.  A property’s market value is $250,000.  The assessment ratio is 40%.  The tax rate is 23 mills.  What are the taxes on the property? $2,300 $230 $5,759 $575

33.  Property managers are usually considered Special agents General agents Universal agents Contractual agents

34.  Your seller client needs to sell his property quickly to take a job in another city.  What do you do with this information? You tell buyers this so the house sells quickly You keep this information confidential You tell the buyers only if they ask You reveal this information only to selling agents

35.  What are the water rights called for oceanfront property owners? Riparian rights Littoral rights Defeasible rights Qualified rights

36.  Typical wording in the habendum clashes would be “I hereby grant” “In witness of” “To have and to hold” “$10.00 and other valuable consideration”

37.  “Sorry, we don’t make any loans on hoses in that neighborhood” is an example of Blockbusting Steering Redlining An acceptable business decisions

38.  Alice rents office space from Fred.  What type of interest does Alice have? Leasehold estate Leased fee estate Fee simple determinable Fee simple absolute

39.  The guarantee of the grantor’s ownership of the property is called the covenant of Quiet enjoyment Warranty forever Further assurances Seizin

40.  A deed restriction says that a property cannot be sold to a person of Native American ancestry.  Which of the following is true? The deed restriction supersedes fair housing law The fair housing law does not apply to Native Americans because technically they are part of Indian Nation Fair housing law takes precedence over the deed restriction This type of restriction was automatically removed by a treaty in 1888

41.  public improvements in a specific neighborhood often are paid for by Ad valorem taxes Special assessment district taxes A public improvement lien The general tax

42.  A room 14 feet wide by 18 feet long is to be carpeted at a cost of $23 a square yard.  What will be the cost to carpet the room? $214 $579 $644 $5,796

43.  Who sets the commission rate in a real estate brokerage office? Georgia Real Estate Commission The local board of REALTORS® No mandatory rates are in effect, but rates need to follow the published rate schedule The broker who owns the business

44.  To whom does an agent always owe fiduciary responsibility? Buyer Seller Customer Principal

45.  Joe and Dave jointly own a quadraplex.  They can’t agree on anything, including how to dissolve their partnership.  Joe finally files a suit for Avulsion Eviction Escheat Partition

46.  A broker receives a commission check for $13,000 based on a 4% commission rate.  How much did the house sell for? $52,000 $300,000 $325,000 $336,960

47.  The law that requires that a deed be in writing is called The stature of frauds The tort reform act The acknowledgement law RESPA

48.  A change to a real estate contract term is handled by  Assignment Novation Amendment Verbal agreement

49.  Which statement is true about real estate tax liens? They take precedence over all other liens They are paid in accordance to when they were recorded They take precedence over all liens except mortgage liens They are the only type of liens that do not attach to the property

50.  Which of the following is legal? A broker offering discounts to members of a certain ethnic group as a way of encouraging them to integrate an area Refusing to make a mortgage loan to an Jewish family with poor credit A broker advertising property exclusively in Spanish-language newspapers A broker providing information on the demographics of a neighborhood including statistics on race and ethnic background

51.  Justin moves out of a rental property six months before the end of the lease.  Sarah moves in and pays rent to Justin for the remainder of the lease.  Sarah is An assignee An assignor A sublessee A sublessor

52.  If a buyer refuses to go ahead with the purchase of a property for which he has signed a contract, what usually happens to the earnest money? It is returned to the buyer It is disbursed to the seller It is disbursed to the seller less the broker’s commission It is held by the broker in a trust account

53.  A property has an assessed value of $237,500 and an assessment rate of 30%.  What is the assessed value of the property? $95,000 $7,125 $71,250 $791,667

54.  By which of the following can you not lose title to property involuntary? Adverse possession Foreclosure Dedication Avulsion

55.  Which if the following would be unacceptable under the federal fair housing law? The resident owner of a three-family house refusing to rent to an Asian man A senior residence for people over 62 A private club of graduates of an exclusive prep school Baptist church sponsored housing available only to Baptists

56.  The loss of the right to enforce a deed restriction because of a failure to enforce that right within a reasonable time frame is called Stature of limitations Laches Restrictive covenant Statue of frauds

57.  Under federal fair housing laws, which of the following is legal? Refusing to rent a house to a man because he’s gay Refusing to sell a house to someone because he’s a Buddhist Showing a white couple houses only in white neighborhoods because they asked you to Charging different security deposits based on the number of children in a family

58.  The best word to describe a situation in which someone takes over the contractual obligations of another in a contract is Novation Assignment Voidable Unenforceable

59.  land, improvement and all the rights of ownership is a good definition of Land ownership Real estate leases Real property Property

60.  A property is assessed at $76,000 and the tax rate is $5 per $100.  What are the taxes? $380 $3,800 $1,520 $152

61.  Which of the following is not a fixture? A fence A dishwasher A painting hanging on the wall A dining room chandelier

62.  You subdivide some land for a residential development.  You want to give the streets to the town.  You do so by Descent Dedication Assession Divestiture

63.  The plan showing the individual lots in a. Subdivision is called The master plan The plat map The zoning plan The lot and block plan

64.  Whose signature is required for a deed to be valid? Grantor Grantee Both grantor and grantee Notary public

65.  What kind of title do buyers have when they sign a contract for deed contract? Executory Implied Full Equitable

66.  A property is assessed at $44,000.  The tax rate is $11 per $1,000.  What are the monthly taxes? $400 $4,000 $4,840 $40.33

67.  The theory that best describes the rights you get with a piece of real estate is The doctrine of complete rights The bundle of rights The development rights theory  Fee simple absolute

68.  The right of the government to take your real estate against your will is known as Escheat Negotiation Eminent domain  Zoning

69.  The gradual wearing away of land by the factors of nature is called Avulsion Accretion Erosion Alluvion

70.  Joint tenancy requires unity of possession, unity of time, unity of interest and unity of Ownership Deed Finance Title

71.  A title free from any defects is a good definition of Equitable title Marketable title Certified title Insured title

72.  A typical apartment lease with a beginning and ending date is An estate for years A periodic estate A net lease A percentage lease

73.  The type of ownership available only to married couples that has the right of survivorship is Joint tenancy Tenancy by the entirety Tenancy in common Community property

74.  A landlord refuses to repair the broker furnace in a house in the middle of winter.  The situation may result in Actual eviction Constructive eviction Ejection Abandonment

75.   The person for whom a will is prepared is known as The grantor The administrator The executor The testator

76.  You sign a contract to buy a house that the seller now refuses to sell to you.  You still want the house.  What do you do? Sue for monetary damages Sue for rescission Sue for completion Sue for specific performance

77.  Ann buys property that is landlocked.  Betsy agrees to let Ann drive across her property to get to the main road. Ann has An easement in gross An easement by the entirety An easement by prescription An easement appurtenant

78.  In his will, Roger has his house put in a trust to be managed by Jillian on behalf of his son Jeremy.  Which of the following is correct in this case? Roger is the trustor and Jillian is the trustee Roger is the trustor and Jeremy is the trustee Jillian is the trustor and Jeremy is the trustee Roger is the trustee and Jeremy is the trustor

79.  The area of a section is 43,560 square fett 80 acres 160 acres 640 acres

80.  A net lease requires the tenant to pay All or some of the building expenses All of the building expenses, including the mortgage payment None of the building expenses A percentage of income earned by the tenant’s business

81.  A contract to do something illegal is Voidable Void Valid  Executory

82.  In which of the following forms of co-ownership are all owners required to sign a deed of sale? Tenancy in common Joint tenancy Tenancy by the entirety Tenancy by survivorship

83.  In what form of ownership does a deceased owner’s share go to her heirs? Tenancy in common Joint tenancy Tenancy by the entirety Tenancy by absolute

84.  An option is an example of what kind of contract? Implied and bilateral Implied and unilateral Express and bilateral Express and unilateral

85.  You’re married and own property with your spouse.  When you die, she will keep her half of the property, and you will be able to leave your half to your sister.  You probably live in what kind of state? Community property state Joint tenancy state Tendency of the entirety state Tenancy in common state

86.  The principal difference between tenancy at will and tenancy at sufferance is The term of the lease The expenses paid Whether rent is paid in arrears or in advance  The landlord’s consent

87.  A corporation owns property in what form? Tenancy in severalty Tenancy in common Joint tenancy Tenancy by the entirety

88.  Which of the following best describes the physical boundaries of land? The surface of the earth and infinite space above the surface The center of the earth and infinite space above the earth The surface of the earth and all water and minerals on or below the surface to the center of the earth The surface of the earth and the air rights above the surface to the point defined by local zoning

89.  The Wallaces, a minority family, would like to buy a home in a certain price range.  Agent Sam shows the family all available properties in a neighborhood of families with similar backgrounds.  Sam does not mention a number of homes in the family’s price range in other neighborhoods.  Sam could be liable for Blockbusting Providing unequal services Steering Nothing because his services were legal and acceptable

90.  Ownership can be transferred voluntarily or involuntarily.  The three ways title can be transferred voluntarily are by Grant, deed, and will Escheat, deed, and covenant Title certificate, will, and deed Sale contract, deed, and warrant of seisin

91.  The guardian for a mentally incompetent person enters into an oral contract with another party to buy a trade fixture on behalf of the incompetent person.  This contract Does not meet validity requirements Is possibly valid and enforceable must be in writing to be valid Is valid and enforceable

92.  Which of the following defines constructive notice? It is notice published in a newspaper It is knowledge one could have or should have obtained It is notice explicitly stated in a legal document It is knowledge received or imparted through direct experience

93.  What is the difference between a variance and a nonconforming use? A variance, one granted, is unconditional and permanent A variance is granted by the zoning board if the owner has a justifiable reason A nonconforming use is allowed if the owner requests in advance of building A nonconforming use violates current zoning, but a variance does not

94.  A principal discloses that she would sell a property for $400,000.  During the listing period, the house is listed and marketed for $430,000.  No offers come in, and the listing period expires.  Three weeks later, the agent confides to a customer that the seller would have sold for less than the listed price.  Which of the following is true? The agent has violated the duty of confidentiality The agent has fulfilled all fiduciary duties, since the listing has expired The agent is violating the duties owed to the customer The agent has created a dual agency situation with the customer

95.  What kind of interest does the buyer acquire once a real estate sale contract is signed by the seller? Legal title Lien holder interest Reversionary interest Equitable title

96.  A landowner conveys a parcel of land with the provisions that the land cannot be developed for retail purposes.  The new owner immediately begins to develop a retail shopping outlet, the grantor finds out and takes the property back.  What kind of estate did this landowner convey? Fee simple absolute Life estate with reversion Life estate with condition subsequent Fee simple determinable

97.  What is cooperative brokerage? An owner agent and a buyer agent combine efforts to complete a sale Outside brokers assist a listing agent in procuring a buyer A seller or buyer lists with several brokers to complete a transaction Agents from a single brokerage firm cooperate to generate listings for the broker

98.  How is a lien terminated? Payment of the debt that is subject of the lien and recording of the satisfaction Transfer of the property that has the lien Recording of another lien that is superior Death of the lienor or lienee

99.  A salesperson, without an oral or written listing agreement, brings potential buyers to the seller.  The seller says, “You can bring me buyers if you want, but I’m not paying you a commission.”  The salesperson then continues to direct buyers to the property.  Which of the following is true about the situation? There is no agency relationship, and therefore the seller will owe no commission if one of the salesperson’s buyers buys the property an implied agency may have been created, with obligations to perform for both seller and agent The seller and agent have an illegal, undisclosed agency relationship The agent has an open exclusive agency listing with no commission agreement, and therefore owes no fiduciary duties to the seller

100.  Ned grants his sister Alice an estate for as long as she lives.  Her descendants, however, cannot inherit the estate.  What kind of estate is it? An estate pur autre vie An estate for years An ordinary life estate A legal life estate

101.  Mary Campbell buys a house from James Thomas and at the same time obtains an option to purchase the adjoining vacant lot for $10,000 within one year.  A few months later, Campbell informs Thomas that she is ready to exercise her option, but finds that Thomas has received an offer for $13,000 from another party.  Thomas states that he will accept the other offer unless Campbell is willing to match the $13,000 offer.  Which of the following is true of this situation? Campbell must pay $13,000 or lose the property Thomas may sell to Campbell or the other party, but the price cannot exceed $10,000 If the other party delivers payment before Campbell does, the option is canceled Thomas must sell to Campbell for $10,000

102.  A buyer submits an offer to a seller and then dies in a car accident.  Before learning of the buyer’s death, the seller accepts the offer.  Which of the following is true? The seller can force the buyer’s estate to go through with the purchase The buyer’s death terminated the offer The seller must make a new offer with the same terms to the buyer’s heirs The buyer’s heirs have the option of enforcing the contract

103.  Which of the following circumstances is the most likely scenario for a ground lease? A developer wants to acquire a necessary parcel that separates two parcels she already owns An owner-developer wants to retain ownership of the land portion of the improved real property A fast food company wants to place a restaurant in an existing building without buying either land or improvement A farmer wants to sell his property to a mining company

104.  Which of the following situations is most likely to represent an illegal nonconforming use? A homeowner in a residential zone converts her residence to a private school A homeowner builds a toolshed in a neighborhood where there are no toolshed A storeowner remodels a storefront in accordance with regulations, and then the zoning is changed to residential A new zoning ordinance outlaws two-story additions after a homeowner completes an addition

105.  The court proceeding that generally settle a decedent’s estate is called Testate Probate Escheat Distribution

106.  An encroachment is An easement that has not been recorded on the title of the burdened property An unauthorized physical intrusion of one property into another A right granted by a property owner to the owner of an adjoining property to build a structure that protrudes across the property line A structure that does not comply with a zoning ordinance

107.  Which of the following is true of a contract for deed transaction? At the end of the contract period, the vendee receives equitable title, provided all required periodic payments have been made The vendee has no right to possess or occupy the property during the contract period At the end of the contract period, the vendor conveys legal title, provided the vendee has fulfilled all obligations The vendor may cancel the contract any time before the final payment has been received

108.  Which of the following best defines actual notice? It is notice published in a newspaper It is knowledge one could have or should have obtained It is notice explicitly stated in a legal document It is knowledge received or imparted through direct experience

109.  In accordance with the statute of frauds Leases in excess of one year must be recorded to be enforceable Oral lease are not enforceable A five-year lease must be in writing to be enforceable An unwritten lease is fraudulent

110.  A homeowner defaults on his mortgage loan.  In the subsequent foreclosure action, the lender takes title to the liened property directly instead of initiating a court-ordered public sale.  This is an example of Strict foreclosure Judicial foreclosure Non-judicial foreclosure Deed in lieu of foreclosure