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Rockwell FUNDAMENTALTEST FINAL ALL
QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
A real estate agent has assisted an investor with the purchase of of a number of commercial
properties. The investor will be out of the country for part of the year and asks the agent to
manage all aspects of those properties during that time, including advertising and leasing.
The real estate agent will be a:
A- General agent
B- Implied agent
C-Special agent
D- universal agent
A- General agent
A real estate agent acting as a property manager is typically a general agent. A property owner
often authorizes a property manager to handle all of the day to day businesses associated with
the property.
The mortgagee assigns its interest and the assignee records the assignment. The mortgagor
now needs to make payments to the:
A- Assignee
B- Assignor
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C- beneficiary
D- mortgagee
A- Assignee
A mortgagee (lender) can sting the mortgage debt to a third party, who is then referred to as
the assignee. Since the assignee didn't actually lend money to the borrower, technically the
assignee is not a mortgagee.
Which of the following would characterize a tenancy in common?
A- Only available to married persons
B- Requirement of equal interests
C- Right of survivorship
D- Tenants can will a partial interest in the property
D- Tenants can will a partial interest in the property
Unlike a joint tenant, a tenant in common can will her interest in the property to someone else.
There is no right of survivorship, and no requirement of equal interest in a tenancy in common.
K buys a piece of landlocked property from L on the condition that L provide an easement
across the property for ingress and egress. The easement isn't recorded, K later sells the
property. Is the easement still valid for the new owner?
A- No, because it wasn't recorded
B- No, because it wasn't mentioned in the deed
C- Yes, because an easement of this type runs with the land, rather than belonging to an
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individual
D- Yes, because K is the servant tenant and L is the dominant tenant
C- Yes, because easement of this type runs with the land rather than the individual
Easements ordinarily need to be in writing and recorded in order to run with the land, but if the
use is apparent an easement can run with the land even if it is not recorded. In any case, the
owner of the landlocked property is always entitled to an access easement, so C is the best
answer here.
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit $5000
in earnest money within two business days after metal acceptance. The offer is contingent on
a feasibility report. On may 5, the seller accepts the offer. On May 11 the soil report is
ordered. On May 17 the soil facility report comes back and is approved by the buyer. By what
date does the earnest money need to be deposited?
A- May 4
B- May 7
C- May 13
D- May 19
B- May 7
Self explanatory read question carefully.
A contract for deed wouldn't be a good idea if the seller's mortgage has a/an:
A- acceleration clause
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B- alienation clause
C- defeasance clause
D- subordination clause
B- Alienation Clause
Aan alienation clause give the lender there gift to accelerate the loan if the borrower sells the
property, including by land contract. So, in general, a contract for deed on property subject to
an alienation clause would be ill-advised, because most sellers wouldn't have enough money to
pay off their mortgage...
A defeasance clause:
A defeasance clause is a mortgage provision indicating that the borrower will be given the title
to the property once all mortgage payment terms are met.
A buyer is getting a loan to purchase a fie acre apple farm with no residence on it. The truth
in lending act requires:
A- a three-day recession period if the borrower changes her mind
B- disclosure of all settlement charges on a uniform settlement satement
C- disclosure of the finance charge
C- No disclosure, because the land is agricultural
D- No disclosure, because the land is agriculture.
TILA disclosure requirements do not apply for business, commercial, or agricultural loans.
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Rockwell FUNDAMENTALTEST FINAL ALL
QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
A real estate agent has assisted an investor with the purchase of of a number of commercial
properties. The investor will be out of the country for part of the year and asks the agent to
manage all aspects of those properties during that time, including advertising and leasing.
The real estate agent will be a:
A- General agent
B- Implied agent
C-Special agent
D- universal agent
A- General agent
A real estate agent acting as a property manager is typically a general agent. A property owner
often authorizes a property manager to handle all of the day to day businesses associated with
the property.
The mortgagee assigns its interest and the assignee records the assignment. The mortgagor
now needs to make payments to the:
A- Assignee
B- Assignor
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C- beneficiary
D- mortgagee
A- Assignee
A mortgagee (lender) can sting the mortgage debt to a third party, who is then referred to as
the assignee. Since the assignee didn't actually lend money to the borrower, technically the
assignee is not a mortgagee.
Which of the following would characterize a tenancy in common?
A- Only available to married persons
B- Requirement of equal interests
C- Right of survivorship
D- Tenants can will a partial interest in the property
D- Tenants can will a partial interest in the property
Unlike a joint tenant, a tenant in common can will her interest in the property to someone else.
There is no right of survivorship, and no requirement of equal interest in a tenancy in common.
K buys a piece of landlocked property from L on the condition that L provide an easement
across the property for ingress and egress. The easement isn't recorded, K later sells the
property. Is the easement still valid for the new owner?
A- No, because it wasn't recorded
B- No, because it wasn't mentioned in the deed
C- Yes, because an easement of this type runs with the land, rather than belonging to an
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individual
D- Yes, because K is the servant tenant and L is the dominant tenant
C- Yes, because easement of this type runs with the land rather than the individual
Easements ordinarily need to be in writing and recorded in order to run with the land, but if the
use is apparent an easement can run with the land even if it is not recorded. In any case, the
owner of the landlocked property is always entitled to an access easement, so C is the best
answer here.
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit $5000
in earnest money within two business days after metal acceptance. The offer is contingent on
a feasibility report. On may 5, the seller accepts the offer. On May 11 the soil report is
ordered. On May 17 the soil facility report comes back and is approved by the buyer. By what
date does the earnest money need to be deposited?
A- May 4
B- May 7
C- May 13
D- May 19
B- May 7
Self explanatory read question carefully.
A contract for deed wouldn't be a good idea if the seller's mortgage has a/an:
A- acceleration clause
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B- alienation clause
C- defeasance clause
D- subordination clause
B- Alienation Clause
Aan alienation clause give the lender there gift to accelerate the loan if the borrower sells the
property, including by land contract. So, in general, a contract for deed on property subject to
an alienation clause would be ill-advised, because most sellers wouldn't have enough money to
pay off their mortgage...
A defeasance clause:
A defeasance clause is a mortgage provision indicating that the borrower will be given the title
to the property once all mortgage payment terms are met.
A buyer is getting a loan to purchase a fie acre apple farm with no residence on it. The truth
in lending act requires:
A- a three-day recession period if the borrower changes her mind
B- disclosure of all settlement charges on a uniform settlement satement
C- disclosure of the finance charge
C- No disclosure, because the land is agricultural
D- No disclosure, because the land is agriculture.
TILA disclosure requirements do not apply for business, commercial, or agricultural loans.
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