Principles Of Real Estate II – Questions & A+ Solutions
The stage of land development during which utilities are installed, parks
constructed and marketing initiated is called Right Ans - Disposition Stage
"To have and to hold for the life of the grantee" is Right Ans - a habendum
clause
For what purpose does a REIT use funds from investors? Right Ans - to
Purchase both real estate and mortgages
The effective term of a deed restriction may be extended with the consent of
Right Ans - a majority of the owners in a subdivision
Through a restrictive covenant in a deed, a developer may establish
restrictions on the right to Right Ans - use land
The hiring and supervising of employees who perform maintenance and other
services generally Right Ans - is the responsibility of the property manager
In order to allow uses of property deemed desirable for public convenience
only marginally acceptable Right Ans - A Planning and Zoning Commission
can grant a conditional-use permit
The budget should take into consideration the owner's long-range plans for
the property and Right Ans - must contain an estimate of the income and
expenses
A ground lease is usually Right Ans - a long-term lease
If there are no smoke alarms in a leased residence, the tenant may do which?
Right Ans - Request one from the landlord
Which is for a definite, fixed period of time? Right Ans - Estate for years
Something that is owed is Right Ans - a debit
The fees to the county clerk to record the deed are paid by Right Ans - the
buyer
, The borrower must be provided the Closing Disclosure, at LEAST how many
business day(s) before closing? Right Ans - Three
If a sale closing in escrow cannot be consummated because the seller's title
cannot be cleared, the escrow agent Right Ans - reinstates the parties to
their former status as if no sale had occurred
The seller owes $2,400 in taxes for the current year. With a May 28 closing
and using a calendar year Right Ans - The daily proration amount is $6.575
(2,400/365)
A house appraised for tax purposes at 90,000 is taxed at an annual rate of 2.50
per each $100 of value. Right Ans - The yearly tax is $2,250 (Step1: 2.5/100
= 0.025; Step2: 90,000*0.025 = 2,250)
The interest for 11 months on a $15,000 loan at an interest rate of 8% is
Right Ans - $1,100 (Step1: 15,000/12mo = 1,250; Step2: 1,250*11mo =
13,750; Step3: 13,750*0.08 = 1,100)
If a property is sold for $90,000, what commission would be paid to the
brokers if the commission rate is 6%? Right Ans - $5,400 (90,000*0.06)
8% of 23,000 = Right Ans - $1,840 (23,000*0.08)
Which is generally recognized as title evidence and can be used to establish
ownership of property Right Ans - Title Insurance
The premium for title insurance is paid Right Ans - once, upon issuance of
the title policy
A brief history of all the documents affecting title is Right Ans - an abstract
of title
In a will, a bequest is a gift of Right Ans - personal property
The 10-year statute for adverse possession is normally limited to the
acquisition of how may acres? Right Ans - 160
The stage of land development during which utilities are installed, parks
constructed and marketing initiated is called Right Ans - Disposition Stage
"To have and to hold for the life of the grantee" is Right Ans - a habendum
clause
For what purpose does a REIT use funds from investors? Right Ans - to
Purchase both real estate and mortgages
The effective term of a deed restriction may be extended with the consent of
Right Ans - a majority of the owners in a subdivision
Through a restrictive covenant in a deed, a developer may establish
restrictions on the right to Right Ans - use land
The hiring and supervising of employees who perform maintenance and other
services generally Right Ans - is the responsibility of the property manager
In order to allow uses of property deemed desirable for public convenience
only marginally acceptable Right Ans - A Planning and Zoning Commission
can grant a conditional-use permit
The budget should take into consideration the owner's long-range plans for
the property and Right Ans - must contain an estimate of the income and
expenses
A ground lease is usually Right Ans - a long-term lease
If there are no smoke alarms in a leased residence, the tenant may do which?
Right Ans - Request one from the landlord
Which is for a definite, fixed period of time? Right Ans - Estate for years
Something that is owed is Right Ans - a debit
The fees to the county clerk to record the deed are paid by Right Ans - the
buyer
, The borrower must be provided the Closing Disclosure, at LEAST how many
business day(s) before closing? Right Ans - Three
If a sale closing in escrow cannot be consummated because the seller's title
cannot be cleared, the escrow agent Right Ans - reinstates the parties to
their former status as if no sale had occurred
The seller owes $2,400 in taxes for the current year. With a May 28 closing
and using a calendar year Right Ans - The daily proration amount is $6.575
(2,400/365)
A house appraised for tax purposes at 90,000 is taxed at an annual rate of 2.50
per each $100 of value. Right Ans - The yearly tax is $2,250 (Step1: 2.5/100
= 0.025; Step2: 90,000*0.025 = 2,250)
The interest for 11 months on a $15,000 loan at an interest rate of 8% is
Right Ans - $1,100 (Step1: 15,000/12mo = 1,250; Step2: 1,250*11mo =
13,750; Step3: 13,750*0.08 = 1,100)
If a property is sold for $90,000, what commission would be paid to the
brokers if the commission rate is 6%? Right Ans - $5,400 (90,000*0.06)
8% of 23,000 = Right Ans - $1,840 (23,000*0.08)
Which is generally recognized as title evidence and can be used to establish
ownership of property Right Ans - Title Insurance
The premium for title insurance is paid Right Ans - once, upon issuance of
the title policy
A brief history of all the documents affecting title is Right Ans - an abstract
of title
In a will, a bequest is a gift of Right Ans - personal property
The 10-year statute for adverse possession is normally limited to the
acquisition of how may acres? Right Ans - 160
