MODULE 16 QUESTIONS AND ANSWERS GRADED A+

MODULE 16 QUESTIONS AND ANSWERS GRADED A+ 1. The person who receives an offer to whom an offer is made a. Grantor b. Offeree c. Offeror d. Vendee B 2. One who is licensed to represent another person in a real estate transaction with intent to receive compenation or valuable consideration a. Broker b. Corporation c. Executor d. Principal A 3. A party in transaction to whom an agent does not have a fiduciary relationship a. Agent b. Client c. Customer d. Principal C 4. An interest that gives the holder/ the tenant/a temporary right to exclusive possession of real estate without title a. Fee simple b. Freehold c. Leasehold d. Life estate C 5. Funds offered as an indication of good faith regarding a future performance of a purchase agreement a. Consideration b. Down payment c. Earnest money d. Security deposit C 6. An interest created in property upon the execution of a valid sales contract whereby actual title will be transferred by deed at a future date (closing) a. Collateral b. Equitable title c. Legal title d. Trust deed B 7. The illegal practice of inducing owners to sell their homes by suggesting the ethnic or racial composition of the neighborhood is causing a decline in property values a. Blockbusting b. Redlining c. Steering d. Twisting A 8. Anyone who is authorized to act on the behalf of someone else a. Agent b. Client c. Licensee d. Principal A 9. Person in position of trust held by law to high standards of good faith and loyalty a. Chattel b. Client c. Commissioner d. Fiduciary D 10. A written agency contract b/w a seller and a broker a. Deed b. Land contract c. Listing d. Purchase agreement C 11. A life estate where the measuring life is someone other than the life tenant a. Defeasible b. Determinable c. Pur autre vie d. Remainder C 12. A rule that says a particular home achieves maximum value when its surrounded by homes similar in style and function a. Conformity b. Contribution c. Immobility d. Scarcity A 13. Permission granted to a property owner by the zoning authority allowing some deviation from strict compliance with the zoning law a. Conditional use b. Non-conforming use c. Spot zoning d. Variance D 14. An easement that benefits a person instead of a piece of land a. Appurtenant easement b. Easement by implication c. Easement by necessity d. Easement in gross D 15. The loss of a right through undue delay or a failure to assert a. Abandonment b. Curtesy c. Encumbrance d. Laches D 16. A deed that conveys any interest in a piece of real property the grantor has at the time the deed is executed a. Deed in lieu of foreclosure b. General warranty deed c. Quitclaim deed d. Special warranty deed C 17. A financial encumbrance on the owners title a. Easement b. Escheat c. License d. Lien D 18. A new contract is created replacing the original contract. Both parties must give their consent a. Assignment b. Mitigation c. Novation d. Rescission C 19. A mortgage that permit the lender to periodically change the interest rate to reflect fluctuations in the cost of money a. APR b. ARM c. CRV d. FHA B 20. Property pledged as security for a debt a. Chattel b. Collateral c. Escrow d. Promissory B