Principles and Practices of Hawaiian Real Estate End of
Chapter Quizzes Questions With Complete Solutions
"A" conveys property to "B" and "C" who are unrelated and not
joint tenants or reciprocal beneficiaries. "B" dies:
A) "C" is the sole owner
B) "B's" share goes to his heirs
C) Property reverted back to "A"
D) "E" comes into the picture Correct Answer B
"A" sells Sunny Brook to "B" who does not record the deed. "A"
then makes a gift of Sunny Brook to "C" by way of a deed
which "C" then records.
I. Since "C" recorded his deed before "B", "C" has better title to
Sunny Brook than "B"
II. "B" has better title than "C" since "C" is not a bona fide
purchaser for value
A) I only
B) II only
C) Both I and II
D) Neither I nor II Correct Answer B
"A", a landowner, builds a small factory in the city of "X". After
the factory is built, the city of "X" adopts a zoning ordinance in
which the area in question is designated a residential area
A) "A" must move his plant to a portion of the city zoned for
industrial purposes
B) "A" may continue to operate as a non-conforming use
C) "A" should abandon his plant and sue the city for damages
D) "A" is entitled to variance Correct Answer B
,"Quieting a title" most nearly means:
A) To obtain title by adverse possession
B) To color a title
C) To mortgage the property
D) To settle a cloud on the title by court action Correct Answer
D
"X" gives "Y" a check for $4,000 at the time "X" signs a
contract to purchase "Y's" real property. The terms of the
purchase are $95,000 sales price paid as follows: $30,000 in
cash from "X" and $65,000 by way of a first mortgage for 30
years at 10% interest. Which of the following terms best
describes the $30,000?
A) Down payment
B) Hard money
C) Earnest money deposit
D) Binder Correct Answer A
17-match questions Correct Answer
A & B are tenants in common. If B dies
I. A's interest in the property is unaffected
II. B's interest goes to A
A) I only
B) II only
C) Both I and II
D) Neither I nor II Correct Answer A
,A 12- unit apartment building has a 9.5% return. What is the
most an investor should pay if each unit rents for $395 a month?
A) $600,000
B) $595,000
C) $603,736
D) $682,000 Correct Answer B. Annual rent.
12 apartments.
Net income for the year.
Net income/ 9.5%.
A 2,000 sq. ft. office leases for $1.50 per month, plus $0.46 per
sq. ft. CAM (Common Area Maintenance). Leasing commission
for the five year lease is 5% of the first $20,000 net rent, 4% of
the next $20,000 net rent and 1% of the balance. The leasing
agent receives 60% of the commission. How much does the
broker receive?
A) $2,160
B) $1,660
C) $2,490
D) $1,440 Correct Answer D
2,000 * $1.50 = $3000 lease per month
$3,000 * 12 = $36,000 lease per year
$36,000 * 5 = $180,000 lease per 5 years
$20,000 * .05 = $1,000 commission each rent
$20,000 * .04 = $800
$20,000 * .03 = $600
$180,000 - 60,000 = $120,000 remaining balance
$120,000 * .01 = $1,200 commission
$1,000 + $800 + $600 + $1,200 =$3,600 total commission
$3,600 * .06 leasing agent; $3,600 * .04 broker
, A 30-year old lava rock wall that extends into your neighbor's
yard is considered to be a(n)
A) Illegal encroachment
B) Zoning violation
C) Adverse possession claim
D) Permitted de minimis structure position discrepancy Correct
Answer A
A 90' x 120' lot sold for $75 a front foot. The adjacent lot sold
for $0.75 a square foot. The second lot had 80' of frontage. If
both lots sold for $12,750, how deep was the second lot?
A) 100'
B) 105'
C) 120'
D) 95' Correct Answer A. Cost of the first lot.
Total minus the cost = cost of second lot.
80 ft * deep * $0.75 = $6,000
80 ft * deep = $8,000
deep = $8, = 100ft
A bank decides not to make a real estate loan to the groups
described below. Such refusal would be a violation of the
Federal Fair Housing law to which of the following groups:
I. Multiple families seeking to live in one residence
II. Three "hard rock" musicians, taking title as joint tenants
A) I only
B) II only
C) Both I and II
D) Neither I nor II Correct Answer D
Chapter Quizzes Questions With Complete Solutions
"A" conveys property to "B" and "C" who are unrelated and not
joint tenants or reciprocal beneficiaries. "B" dies:
A) "C" is the sole owner
B) "B's" share goes to his heirs
C) Property reverted back to "A"
D) "E" comes into the picture Correct Answer B
"A" sells Sunny Brook to "B" who does not record the deed. "A"
then makes a gift of Sunny Brook to "C" by way of a deed
which "C" then records.
I. Since "C" recorded his deed before "B", "C" has better title to
Sunny Brook than "B"
II. "B" has better title than "C" since "C" is not a bona fide
purchaser for value
A) I only
B) II only
C) Both I and II
D) Neither I nor II Correct Answer B
"A", a landowner, builds a small factory in the city of "X". After
the factory is built, the city of "X" adopts a zoning ordinance in
which the area in question is designated a residential area
A) "A" must move his plant to a portion of the city zoned for
industrial purposes
B) "A" may continue to operate as a non-conforming use
C) "A" should abandon his plant and sue the city for damages
D) "A" is entitled to variance Correct Answer B
,"Quieting a title" most nearly means:
A) To obtain title by adverse possession
B) To color a title
C) To mortgage the property
D) To settle a cloud on the title by court action Correct Answer
D
"X" gives "Y" a check for $4,000 at the time "X" signs a
contract to purchase "Y's" real property. The terms of the
purchase are $95,000 sales price paid as follows: $30,000 in
cash from "X" and $65,000 by way of a first mortgage for 30
years at 10% interest. Which of the following terms best
describes the $30,000?
A) Down payment
B) Hard money
C) Earnest money deposit
D) Binder Correct Answer A
17-match questions Correct Answer
A & B are tenants in common. If B dies
I. A's interest in the property is unaffected
II. B's interest goes to A
A) I only
B) II only
C) Both I and II
D) Neither I nor II Correct Answer A
,A 12- unit apartment building has a 9.5% return. What is the
most an investor should pay if each unit rents for $395 a month?
A) $600,000
B) $595,000
C) $603,736
D) $682,000 Correct Answer B. Annual rent.
12 apartments.
Net income for the year.
Net income/ 9.5%.
A 2,000 sq. ft. office leases for $1.50 per month, plus $0.46 per
sq. ft. CAM (Common Area Maintenance). Leasing commission
for the five year lease is 5% of the first $20,000 net rent, 4% of
the next $20,000 net rent and 1% of the balance. The leasing
agent receives 60% of the commission. How much does the
broker receive?
A) $2,160
B) $1,660
C) $2,490
D) $1,440 Correct Answer D
2,000 * $1.50 = $3000 lease per month
$3,000 * 12 = $36,000 lease per year
$36,000 * 5 = $180,000 lease per 5 years
$20,000 * .05 = $1,000 commission each rent
$20,000 * .04 = $800
$20,000 * .03 = $600
$180,000 - 60,000 = $120,000 remaining balance
$120,000 * .01 = $1,200 commission
$1,000 + $800 + $600 + $1,200 =$3,600 total commission
$3,600 * .06 leasing agent; $3,600 * .04 broker
, A 30-year old lava rock wall that extends into your neighbor's
yard is considered to be a(n)
A) Illegal encroachment
B) Zoning violation
C) Adverse possession claim
D) Permitted de minimis structure position discrepancy Correct
Answer A
A 90' x 120' lot sold for $75 a front foot. The adjacent lot sold
for $0.75 a square foot. The second lot had 80' of frontage. If
both lots sold for $12,750, how deep was the second lot?
A) 100'
B) 105'
C) 120'
D) 95' Correct Answer A. Cost of the first lot.
Total minus the cost = cost of second lot.
80 ft * deep * $0.75 = $6,000
80 ft * deep = $8,000
deep = $8, = 100ft
A bank decides not to make a real estate loan to the groups
described below. Such refusal would be a violation of the
Federal Fair Housing law to which of the following groups:
I. Multiple families seeking to live in one residence
II. Three "hard rock" musicians, taking title as joint tenants
A) I only
B) II only
C) Both I and II
D) Neither I nor II Correct Answer D
