Real Estate

  1. If Alex threatens Brian to get him to sign a contract to sell property for a low price, the contract is voidable because it violaters the doctrine of.

    A) reality of consent

    The contract would have an offer and acceptance (even if obtained under duress). There is no indication that Alex or Brian are not competetn to enter into the contract; and there is consideration even if the prices is low. Reality of consent is being violated because of duress.
  2. If a contract seems on the surface to be valid but neither party can sue the other to force performance the contract is said to be.

    A) unenforceable

    The example is an oral contract for the sale of real estate. It is unenforceable because the statue of frauds requires real estate contracts to be in writting.
  3. Additional conditions that must be satisfied before a sales contract is fully enforceable are called.

    B) contingencies

    A binder is a short version of a sales contract that is used until a more complete version is drawn up by a lawyer. Amendments are charges to the existing content of a contract. A contingency might e spelled out in an addendum, but the other provisions also may be contained in addendums.
  4. A contract that is without legal force or affect because it lacks one or more essential elements.
  5. A violation of any of the terms or conditions of a contract without legal excuse.
  6. An employment contract between a broker and a seller.
    Listing Agreement
  7. The right to and evidence of ownership of land.
  8. A written instrument by which an owner intentionally conveys the right , title or interest ina parcel of real estate to somone else.
  9. The person who acquires title by gift of sale.
  10. A title is considered transferred when the deed is actually signed and acknowleded by the grantor.

    A) T
    B) F
    B) F

    A title is considered transferred when the deed is actually delivered to the grantee by the grantor.
  11. Which of the following is an example of involuntary alienation?

    B) escheat

    When a person dies intestate and leaves no heirs, his or her estate will escheat to the state.
  12. All of the following are necessary to a valid deed except:

    B) grantee's signature
  13. Title is not considered transferred until the deed is :

    A) signed by the grantor
    B) delivered to and accepted by the grantee
    D) delivered to the grantor
    C) release from escrow
    B) delviered and accepted by the grantee
  14. A bargain and sale deed contains hwo many express warranties?

    A) 0

    A bargain and sale deed contains no express warranties agains encumbrances, but it does imply that the grantor holds title and possession of the property.
  15. A deed that contains no covenants, warranties or implications and that provides the least protection of any deed.
  16. The record of property ownership.
    Chain of title
  17. The premium for title insurance policy is paid ___.
    once at closing
  18. The lender in a mortgage loan.
  19. A borrowers personal pledge to repay a debt according to agreed on terms.
    Promissory note.
  20. When a property is mortgaged, the owner must execute both a promissory note and a security instrument.

    A) T
    B) F
    A) T
  21. Where a trust deed is used the lender is the:

    D) beneficiary

    The trustor (borrower) conveys naked or bare title to the trustee who holds it in a trust for the beneficiary (lender)
  22. The borrower defaulted on his mortgage loan leaving an unpaid balance of 95k. after receiving only 85k from the sale of the property, the lender filed for a:

    D) deficiency judgement

    Lis pendens gives notice that the property is the subject oflegal action. A satisfaction indicates that the loan was fully repaid. A deficiency results when the foreclosed property does not bring enough money to fully repay the loan.
  23. What is the term that refers to a lender charging an interest rate that is higher than that permited by law?

    D) usury
  24. Wha is the purpose of laws?

    C) to protect consumers from lenders charging excessively high rates
  25. The broker may still be entitled to a commission in which of the following situations where a pending sale did not close?

    A) the seller changed his or her mind and decided not to sell

    if the sale is not completed due to the sellers default, then the broker is generally due a commission.
  26. An arrangement to sell one product only if the buyer purchases another product as well is called a:

    D) tie in agreement
  27. An agreement that a listing broker offers no service other than placing a listing in the MLS is called a:

    B) limited service listing agreement
  28. Teh buisness of bringing parties together
  29. An individual who is licensed to buy sell, exchange or lease property for others and to charge a fee for those services.
    Real esate brokerage
  30. The current policy that the National Assocciation of Realtors has adopted that allows all MLS members to have equal rights to display MLS data is called the.

    B) internet listing display policy
  31. Company held by a single owner
    Sole proprietorship
  32. A person who is licensed only to perform real estate activities on behalf of a broker.
    Sales person
  33. A Sales Person whose activities are closely controlled and who is entitled to benefits, unemployment compensation and income tax withholding.
  34. What is the compensation plan called if a salesperson commission split increases depending on whether the salesperson achives higher production goals?

    C) graduated commission split
  35. A broker who starts an uninterrupted chain of events that results in the sale of a property
    Procuring cause
  36. A licnesee who works under the terms of a written contract and receives more than 90% of hsi or her income form sales production rather than hours worked.
    Independent contractor
  37. A form of compensation computed as a percentage of the total sales price of a property.
  38. A person who is prepared to buy on the seller's term.
    Ready, willing and able buyer.
  39. What is a package insurance policy against loss due to fire, theft and liability?
    Home owners insurance
  40. A multiunit development in which owners own their units separately and share ownership of common facilities.
  41. What is a merger of diverse land uses into a subdivision or development called?
    Planned unit development
  42. What is interest or value an owner has in property over and above any indebtedness on that property called?
  43. What is a clause in an insurance policy that requires the property to be insured for at least 80 % of its replacement cost called?
  44. A highrise development that combines commercial and residential uses in a single structure.
    Mixed use development
  45. Another name for personal property
  46. Single tax payers are allowed to exclude 250k from capital gains tax for profits on the sale of a principal residence.

    A) T
    B) F
    A) T
  47. Which of the following may be deducted from a homebuyers gross income for income purposes?

    D) loan discount points
  48. Real estate licensees who represent buyer exclusively.
    Buyers agents
  49. The party to whom an agent delegates some of his or her authority.
  50. The individual who hires and delegates to the agent the responsibility of representing his or her interests.
Card Set
Real Estate
Real Estate