REAL ESTATE LAW EXAM | QUESTIONS AND ANSWERS| VERIFIED
AND WELL DETAILED ANSWERS| LATEST EXAM UPDATE
Which type of deed conveys real property from a decedents estate to a buyer? -
CORRECT ANSWERS - Executor's Deed
What's the term for a notice given directly to and received by a person? -
CORRECT ANSWERS - Actual Notice
Terry has a costume shop in a commercial building. He has a one-year lease that
automatically renews for another year unless either Terry or the landlord
terminates. What type of leasehold estate is this? - CORRECT ANSWERS -
Estate from period-to-period
Per FIRPTA, trusts with foreign beneficiaries must withhold what percentage from
the sale of U. S. properties? - CORRECT ANSWERS - 35%
A taxpayer can claim a capital gains exclusion _______. - CORRECT
ANSWERS - Once every two years.
When a consumer or another licensee files a complaint against a licensee, to which
entity does the commission refer the complaint for an investigation? - CORRECT
ANSWERS - The Division of Professional Regulation
Which type of leasehold lasts for a defined period of time and automatically
terminates when that period ends? - CORRECT ANSWERS - Estate for years
,Which type of legal description is this: "Plat of Block 28, Woodmen Heights Tract,
recorded in Map Book 27, page 68, at the Eldor County Records Office"? -
CORRECT ANSWERS - Lot & block
Reuben purchased a property from a seller who gave him a general warranty deed.
What's true of Reuben's deed to this property? - CORRECT ANSWERS - The
deed provides the greatest protection available from a grantor to a grantee.
In a title theory state, which of the following is a true statement? - CORRECT
ANSWERS - It's generally much easier for a lender to foreclose on a property.
Mariel is buying a home and is looking forward to the tax deductions. She may
deduct which of the following? - CORRECT ANSWERS - Loan origination fee
In a face-to-face closing, who meets with whom? - CORRECT ANSWERS -
Both the buyer and seller
In a real estate transaction, which of the following is established when the parties
enter into an agreement voluntarily with full understanding of the contract terms? -
CORRECT ANSWERS - Consent
Your neighbor hires a middle school student to mow his lawn every two weeks. He
draws up a written contract in which he clearly outlines the student's mowing
responsibilities and the payment the student will receive in return. Which of the
following is true in this situation? - CORRECT ANSWERS - If the neighbor and
the student are content to uphold their agreement, the fact that it's not legally
binding doesn't matter.
,The Schmidts just sold their home to Jose and Maria Lopez, who have moved to
the state from Mexico while Maria has a visiting professorship at the University of
Delaware. The Lopezes intend to keep the property as a second home. What's true
about the use of Form 5403, Declaration of Estimated Income Tax, in this
situation? - CORRECT ANSWERS - The Schmidts won't have to pay when the
form is filed but may still owe capital gains tax on their state income tax return.
Which of these acts has special provisions for borrowers who are victims of over-
charging? - CORRECT ANSWERS - Real Estate Settlement Procedures Act
Which of the following is true about air rights? - CORRECT ANSWERS - They
allow the owner to use the open space above buildings.
Which of the following is a key consideration and starting reference for a metes
and bounds description? - CORRECT ANSWERS - Point of beginning
True or False: An implied agreement is not based on any formal agreement, either
written or implied, between the principals. - CORRECT ANSWERS - True
What is an example of "good consideration" in real estate? - CORRECT
ANSWERS - Gifting a house to a family member.
Which investment cycle is an investor in when there is depreciated basis and tax-
deferral through 1031 exchanges? - CORRECT ANSWERS - Reversion
, Which of the following will be issued only if title is acceptable and an attorney
provides a certificate of title opinion? - CORRECT ANSWERS - Title insurance
policy
From an agent's perspective, what's one benefit of a buyer representation
agreement? - CORRECT ANSWERS - It defines how and how much the agent
will be paid.
Cluster zoning would include single-family homes, townhomes, apartments, and
condominiums on a single parcel, provided that the developer leaves a portion
________. - CORRECT ANSWERS - Open for a playground, a park, and a
walking path.
James Sawyer evicted his tenant, Kate Abbot, for nonpayment. However, she didn't
vacate the apartment after the required 72 hours and has yet to move out. This is an
example of _______. - CORRECT ANSWERS - Estate at sufferance.
Local authorities lack police power over which of the following? - CORRECT
ANSWERS - Federal government construction projects.
Kurt bought a vacant lot in a development that was 85% completed. When he
started working with the builder to lay out where the house and driveway would
lie, it was determined that he would need an easement because his driveway would
spill over onto the adjacent lot by a few feet. What type of easement is this? -
CORRECT ANSWERS - Easement appurtenant
The CFPB uses education to accomplish its mission, such as the ______
publications - CORRECT ANSWERS - Know Before You Owe
AND WELL DETAILED ANSWERS| LATEST EXAM UPDATE
Which type of deed conveys real property from a decedents estate to a buyer? -
CORRECT ANSWERS - Executor's Deed
What's the term for a notice given directly to and received by a person? -
CORRECT ANSWERS - Actual Notice
Terry has a costume shop in a commercial building. He has a one-year lease that
automatically renews for another year unless either Terry or the landlord
terminates. What type of leasehold estate is this? - CORRECT ANSWERS -
Estate from period-to-period
Per FIRPTA, trusts with foreign beneficiaries must withhold what percentage from
the sale of U. S. properties? - CORRECT ANSWERS - 35%
A taxpayer can claim a capital gains exclusion _______. - CORRECT
ANSWERS - Once every two years.
When a consumer or another licensee files a complaint against a licensee, to which
entity does the commission refer the complaint for an investigation? - CORRECT
ANSWERS - The Division of Professional Regulation
Which type of leasehold lasts for a defined period of time and automatically
terminates when that period ends? - CORRECT ANSWERS - Estate for years
,Which type of legal description is this: "Plat of Block 28, Woodmen Heights Tract,
recorded in Map Book 27, page 68, at the Eldor County Records Office"? -
CORRECT ANSWERS - Lot & block
Reuben purchased a property from a seller who gave him a general warranty deed.
What's true of Reuben's deed to this property? - CORRECT ANSWERS - The
deed provides the greatest protection available from a grantor to a grantee.
In a title theory state, which of the following is a true statement? - CORRECT
ANSWERS - It's generally much easier for a lender to foreclose on a property.
Mariel is buying a home and is looking forward to the tax deductions. She may
deduct which of the following? - CORRECT ANSWERS - Loan origination fee
In a face-to-face closing, who meets with whom? - CORRECT ANSWERS -
Both the buyer and seller
In a real estate transaction, which of the following is established when the parties
enter into an agreement voluntarily with full understanding of the contract terms? -
CORRECT ANSWERS - Consent
Your neighbor hires a middle school student to mow his lawn every two weeks. He
draws up a written contract in which he clearly outlines the student's mowing
responsibilities and the payment the student will receive in return. Which of the
following is true in this situation? - CORRECT ANSWERS - If the neighbor and
the student are content to uphold their agreement, the fact that it's not legally
binding doesn't matter.
,The Schmidts just sold their home to Jose and Maria Lopez, who have moved to
the state from Mexico while Maria has a visiting professorship at the University of
Delaware. The Lopezes intend to keep the property as a second home. What's true
about the use of Form 5403, Declaration of Estimated Income Tax, in this
situation? - CORRECT ANSWERS - The Schmidts won't have to pay when the
form is filed but may still owe capital gains tax on their state income tax return.
Which of these acts has special provisions for borrowers who are victims of over-
charging? - CORRECT ANSWERS - Real Estate Settlement Procedures Act
Which of the following is true about air rights? - CORRECT ANSWERS - They
allow the owner to use the open space above buildings.
Which of the following is a key consideration and starting reference for a metes
and bounds description? - CORRECT ANSWERS - Point of beginning
True or False: An implied agreement is not based on any formal agreement, either
written or implied, between the principals. - CORRECT ANSWERS - True
What is an example of "good consideration" in real estate? - CORRECT
ANSWERS - Gifting a house to a family member.
Which investment cycle is an investor in when there is depreciated basis and tax-
deferral through 1031 exchanges? - CORRECT ANSWERS - Reversion
, Which of the following will be issued only if title is acceptable and an attorney
provides a certificate of title opinion? - CORRECT ANSWERS - Title insurance
policy
From an agent's perspective, what's one benefit of a buyer representation
agreement? - CORRECT ANSWERS - It defines how and how much the agent
will be paid.
Cluster zoning would include single-family homes, townhomes, apartments, and
condominiums on a single parcel, provided that the developer leaves a portion
________. - CORRECT ANSWERS - Open for a playground, a park, and a
walking path.
James Sawyer evicted his tenant, Kate Abbot, for nonpayment. However, she didn't
vacate the apartment after the required 72 hours and has yet to move out. This is an
example of _______. - CORRECT ANSWERS - Estate at sufferance.
Local authorities lack police power over which of the following? - CORRECT
ANSWERS - Federal government construction projects.
Kurt bought a vacant lot in a development that was 85% completed. When he
started working with the builder to lay out where the house and driveway would
lie, it was determined that he would need an easement because his driveway would
spill over onto the adjacent lot by a few feet. What type of easement is this? -
CORRECT ANSWERS - Easement appurtenant
The CFPB uses education to accomplish its mission, such as the ______
publications - CORRECT ANSWERS - Know Before You Owe
