Colorado PSI Real Estate Practice Test | Questions with 100% Correct Answers | Verified | Latest Update 2024

Legal descriptions using the government survey system are NOT generally used in - the original 13 states. Real property can be converted to personal property by - severance A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor? - A license. A broker hires a salesperson as an independent contractor. In order for the salesperson to be considered an independent contractor for federal income tax purposes, the broker's written contract with the salesperson MUST specify - that the salesperson will not be treated as an employee for federal income tax purposes. The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, - his undivided interest passes to his heirs. A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds? - : The second mortgagee receives nothing unless he forced the foreclosure auction.