Real Estate Fundamentals Exam

  1. The phrase "bundle of rights" is properly included in
    the definition of real property
  2. Land is considered
  3. An owner leased store space to a tenant to open a restaurant.  The tenant as installed ovens, booths, counters and other equipment.  When would these items become real property?
  4. A bill of sale is used to transfer ownership of
    real property
  5. Which is considered an indefeasable fee?
    Fee Simple
  6. In PA, mine subsidence refers to
    Surface Right
  7. The owner of 50 acres of land with 500 feet of frontage on a desirable lake wishes to subdivide the parcel into salable lots.  She wants to gain control over the lake frontage over the lake fronatge while allowing lot owners to have access to the lake.  What type of access rights should sje give propective lot purchasers?
    An appurtenant of easement
  8. A man conveys pwnership of his house to his mother and stipulates that upon her death, he will recapture ownership.  The interest that the man has in the property is
    Legal life estate
  9. Two partners bought a store building, take titile as joint tenants.  One partner dies testate.  The other partner now owns the store
    Right of suvivorship
  10. A person who owns one unit in a multiunit structure together with a specifies undivided interest in the common elements own a
  11. Two people own a building as joint tenants with rights of suvivorship.  One of the owners dies intestate.  The other now owns the building
    In severalaty
  12. WHich is a characteristic of a metes-and-bounds legal description
    A point of beginning
  13. The

    The following is not considered accepatble as legal identification of land
    Street Address

    • The following are:
    • reference to a plat filed in the county clerks office
    • metes and bounds
    • gov't survey
  14. The General warrenty deed provides the greatest protection from the seller to the purchashers of a property
  15. A mechanic's lien is properly classifed as a
    Specific Lien
  16. After a borrowers defaults on morgage paymets, a court orders real estate sold to satisfy the unpaod lien.  This is an example of
  17. A title search revealed several outstanding liends against a property.  Which has the highest priority?
    Real estate liens
  18. In general, how is lien prirotiy determined?
    The date on which the lien was recoreded determines the priority  First in, first out
  19. Under the terms of a trust established by a will, the trustee is required to sell the realestate the trust holds.  The dee that will be delivered at settlement of such sale is a
    Trustees deed
  20. The seller conveyed a quitclaim deed to the buyer.  Upon receipt of the deed, the buyer may be sertain that
    The seller has no further interest in the property.
  21. A single person owned a parcel of land.  Subequent to the owner's death, the probate court determined the distribution of the land in accordance with the state's statutes.  Ther person died
    Intestate--without a will
  22. A grantor does not wish to be responsible for defects in the title that arise from a previous owners but will guarantee the title for the time the grantor had ownership.  What type of deed would that convey?
    A special warrenty deed
  23. Title Insurance Policy is acceptable evidence of marketable titiel
  24. Generally, if some defect in the title to real property is found by the preliminary titile search, the effect on a sales contract is that
    The seller has a reasonable time to correct the defect
  25. A deed that has covenants of quiet enjoyment and futher assurances is a
    Warrenty Deed
  26. The fee charged by a mortagebroker to arrange a loan is a
    Loan origination fee
  27. The clause in a trust deed or mrtage permits the lender to declare the entire unpaid balance immediately due and payable upon default is the
    acceleration clause
  28. A propery dold for $230,000.  The buyer put down 10 percent of the purchase price in an escrow accounts and promised to bing another in cash to the closing.  The buyer obtained an 80% loan to value LTV, loan for balance of the purchase price.  The lender charged two  discount points on the loan.  Including the earnerst money deposit, how much cash did the buyer need to cover the expenses of the down payment and the discount points.
    • $49,680
    • 10% in escrow--23,000
    • 10% cash at closing--23,000  eaquals 46,000
    • 1 point = 1% of the loan
    • LTV $230,000 x .80 = $184,000 x .02 = 3,680
    • 46,000 + 3,680 = $49,680
  29. The absence of an agreement to the contrary, the mortgage having priority will be the one
    recorded first
  30. What type of mortgate loan requires equal payment for 30 years, at which both time the princlipal and the interst will be fully satisfied
    Fully amortized loan
  31. A lender is concerned that interst rates will rise in the furture.  What clause can the lender include in the note to prevent the locan from being assumed with the current low interest?
  32. The sellers decided that they did not wish to sell after they entered into a contract with buyers, who really want this particular home.  What option is avaialble to the buyers?
    Suit for specific performance
  33. Who may file a lien against real property for payment services rendered?
    Commercial broker for payment of service rendered
  34. When a subdivision ws developed, a deed restriction covering all the properties set aside to the back six feet of each parcel of a combnation green belt area and a bicycle path.  A property owner has converted the back one half of his yard, including the set aside space, into an organic garden.  What, if anything, can be done to enforce the deed restriction?
    Go to court in an attempt to obtain injunctive relief.  ????
  35. What is the official value of real estate used for tax purposes?
    Assessed value.
  36. A tire company has a manufacturing plant located in the area that has just been rezpned for residential use.  The company is allowed to continue operating the plant under the zoing clssification.  However, if the plant is destroyed by fire or other hazzard, the tire company most likely--
    Could rebuild the plant in that neighborhood by applying for a zoning varience
  37. Under the existing ordinance, no signs that extend more than three feet above the highest point of a room, may be placed on any building.  An owner wants to errect a nine-foot-high revolving sign on the roof of his store.  In order to do this legally, the owner must get
    A varience
  38. A method of ealing off disintegrating asbestos is called
  39. In regulations regarding lead-based paint, the Department of Housing and Urban Development (HUD) requires that
    Known paint hazzards must be disclosed
  40. THe condemnation of private property for public use is allowed under the state's right of
    eminent domain
  41. The Real Estate Commision conducts it's activities to
    Protect public interest
  42. The Commission has the authority
    Promulgate rules and regulation
  43. The commission has the authority to take disciplinary action against
  44. What action can the Commission take if a salwsperson advertises a properyt for sale without the owner's permission?
    Suspend the salesperson's licence
  45. How many years of active licensure, if any, are required to a salesperson licensee to qualify for a broker's license?
    At least three years.
  46. A broker is responsible for which activity?
    Business conducted at branch offices
  47. To be eligable for a salesperson's license, an indivudualy must do all of the following, except
    Be a high schoold graduate
  48. If a residentail tenant rents a property from a landlord for three years, the maximum amount of security deposit the landlord may require from the tenant in the thrid year is
    One month of the current rent???????
  49. A salesperson's license must be
    displayed in the broker's main office.
  50. A broker can be subject to disciplinary action of a salesperson is found guilty of misconduct
    even if the broker was not aware of the salesperson's action and had a policy against the actions the salesperson took
  51. When a property is advertised for sale by a salesperson, what information must be included in the ad?
    Business name of the broker.
  52. Who must first obtain a real estate license before conduction real estate activities
  53. A broker's license will expire at the end of May.  The following is due as of June 1?
    The license will be inactive and the broker must cease to practice on June 1st, if the broker fails to renew it.
  54. To obtain a salesperson's license, a person must
    Pass an examination
  55. The purpose of the recovery fund is to enable
    People to receive payment of uncollected judgements against licensees
Card Set
Real Estate Fundamentals Exam
Real Estate Fundamentals Exam