1. An option listing guarantees that the broker will purchase the property within a certain period of time.

    A) T
    B) F
    B) F

    With an option listing, the broker has the right but not the obligation to purchase the property.
  2. Broker John is retiring and wants to sell his listings to another broker. How can he do this?

    B) The sellers must agree to a new listing with the new broker
  3. In most states a broker's license can be suspended or revoked if he or she.

    B) takes a listing that does not include a date on which the listing expires
  4. Marketing Organization whose broker member make their own exclusive listings available to other brokers.
    Multiple Listing Service
  5. An employment contract for brokers services
    Listing agreement
  6. A listing agreement in which the broker has the right to purchase the listed property.
    Option listing
  7. The function of an ___ is to provide a setting in which supply and demand can establish the value of real property.
  8. The most important economic characteristic of land is:

    D) location
  9. A tenant farmer built a chicken coop and a tool shed. These buildings belong to the ?

    A) Tenant
    B) owner of real estate
    A) Tenant
  10. The developer added sewer lines, utilities and built two streets. What are these items called?

    B) improvements
  11. The new owner received the land, a garage and the right to drive on his neighbor's drive way this right is an example of an:

    D) apprutenance

    Are rights that travel with the property ownership
  12. Method of annexation, adoption and agreement are the legal test of determining whether an item is:

    B) real property of personal property
  13. Which of the following is an example of an economic characteristic of land?

    A) scarcity

    Immobility, industructibility and uniquenss are physical characteristics.
  14. The farmer has posted a number of no trespassing and no hunting signs on the property. Which stick in the bundle of rights gives the farmer this authority?

    C) exclusion
  15. A right or privilage tied to real proeprty although not necessarily part of the property is called an.

    C) appurtenance
  16. Mobile home, rahter than manufactured housing is the term used for a factory built hoem that was built before?

    B) 1976

    The term mobile home was phased out with the passage of the National Manufactured Housing construction and safety standards act of 1976.
  17. The countrys cnetral banking system, which controls the nations monetary policy by regulating the supply of money and interest rates.

    B) federal reserve system
  18. The right to use the open space above the surface of a property.
    air rights
  19. Any structure or modification erected or imposed on a site to enhance the value of the property.
  20. A multinunit residential building owned by a corporation and operated on behalf of stockholder-tenants who hold proprietary leases.
  21. Changing an itme of real estate to personal property by detaching it from the land.
  22. Land, mineral and air rights in the land are included in the definition of:

    B) real property
  23. Farms and timberland are considred to be _____ property.
  24. All of the following factors can affect the supply of real estate except?

    D) demographics

    affects demand for real estate.
  25. The right to dispose of real property by will or deed is contained in the?
    Bundle of rights
  26. All of the following are included in the bundle of rights except?

    B) expansion
  27. Price fixing, group boycotting, and allocation of markets are three examples of antitrust violations.

    A) T
    B) F
    A) T
  28. In a civil suit based on an antitrust violation by a real estate licensee, the injured party may recover three times value of actual damages.

    A) T
    B) F
    A) T
  29. A broker is considered to be the procuring cause of a sale if he or she is present at the time the transaction closes.

    A) T
    B) F
    B) F
  30. A real estate sales person is licensed to buy, sell exchange or lease real property for others and to charge a fee for those services.

    A) T
    B) F
    B) F

    Only a broker can do all of those activities
  31. All of the following are violations of The Federal Antitrust Laws except:

    B) comission splitting
  32. After license laws are enacted by the legislature, who is responisble for rules and regulations?

    A) licensing authority (division, comission etc)

    Rules and regulations are written and adopted by the licensing authorities in each state. they have the same forces as the law abut are esier to change because they do not have to go through legislature.
  33. A right established by state law that permits a defaulted borrower to recover property within a limtited time after a foreclosure sale.
    Statutory right of redemption
  34. Idea that a mortgage is purely a lien on real estae.
    Lien thoery
  35. Concept that the borrower actually gives legal title to the lender (or third party) and retains equitable title.
    Title thoery
  36. The borrowers legal status on a deed of trust.
  37. The lenders legal status on a deed of trust.
  38. On a deed of trust, a third party who holds the deed as security for the loan.
  39. A national system of banking districts designed to maintain sound credit conditions and favorable economic climate.
    Federal reserve
  40. The short term interest rate charged to a banks largest most credit worthy customer.
    Prime rate
  41. Lenders who originate loans by making money available to borrowers.
    Primary mortgage market
  42. Investors who by and sell loans after funding.
    Secondary mortgage market
  43. A government sponsored enterprise organized as private, stock issuinc corporation that buys pools of mortgages and uses them as collateral for mortgage backed securities.
    Fannie Mae
  44. Kents homeowners ins policy contains a coinsurance provision; the house is insured for replacemnt cost. If Kents home burns down, which of the following statements is true?

    B) kent may make a claim for the full cost of the repair without deduction for depreciation.
  45. Marias house is contructed so that the floor of her home is built several inches above the 100 year flood mark. If maria applies for a federal related mortgage loan, how will marias mortgagelender apply flood insruance rule?

    C) it may excempt marias house from the flood ins requirements.
  46. Which of the following is a characteristic of penalty free IRA withdrawals for first time home buyers?

    C) the withdrawn amont must be spent entirely within 120 days on a down payment
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