REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
1. A section of a township contains 640 acres
2. Identify the form of co-ownership in which tenancy in common
two or more persons each have an undivided
interest in the property, but no right of
survivorship.
Fee simple absolute
3. The highest and best form of ownership in
real prop- erty is called
4. Which is a general lien? judgement lien
5. The air space between the walls, floors, and common area
ceiling areas of a condominium project is
called
6. Which is NOT an example of a freehold estate? periodic tenancy
7. What lien attaches to a property to prevent the trans- attachment
fer of title when there is a pending lawsuit
that may affect the title?
8. The rate of taxation in Coolville is currently 73 mills. On $315
the ballot for the next election is a tax levy of 6
mills for the public schools. Mr. Jones' house is
worth $150,000 and the local government
assesses tax value at 35%. How much more in
property taxes will Mr. Jones have to pay if the
tax levy passes?
9. The taking of private property for public use is called
condemnation
1/
31
,REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
10. Roberta wishes to build her garage two feet from her a variance
side lot line. City code calls for all side
setbacks to be at least five feet. In order to
legally proceed, Roberta needs to get
2/
31
,REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
11. Mom & Dad's Cafe is located in an area Yes, because the
recently re- zoned as residential. Will it be restau- rant will be
allowed to continue operating as a "grandfa- thered" into
restaurant? the area
12. The rule that says a buyer will not pay more substitution
for a property than a comparable substitute
is the rule of
13. Replacement of a building best describes building the functional
equivalent
of the original structure
14. Gross income best describes income before expenses
15. A 10-unit apartment building has an annual $382,500
gross in- come of $5,000 per unit. A vacancy
and collection loss of 5% is normal for the
area. Annual expenses total
$9,250. The purchasers desire a 10% return
on their investment. How much should they
be willing to pay for the property?
16. What is assessment value? value the property
taxes are based
on
17. For the income approach to appraisal, value is a refer- worth of
the investment
ence to the
18. Which clause in an adjustable rate mortgage allows the
3/
31
, REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
lender to change the rate of interest? escalation
19. The Equal Credit Opportunity Act does NOT
prohibit lenders from discriminating against amount of income
potential borrow- ers on the basis of
20. Sally and George a married couple have elected to buy Principal,
Interest, Taxes,
a home. Their calculated" PITI" is well within the qual- Insurance
4/
31
CORRECT ANSWERS PASSED ALREADY
GRADED A+
1. A section of a township contains 640 acres
2. Identify the form of co-ownership in which tenancy in common
two or more persons each have an undivided
interest in the property, but no right of
survivorship.
Fee simple absolute
3. The highest and best form of ownership in
real prop- erty is called
4. Which is a general lien? judgement lien
5. The air space between the walls, floors, and common area
ceiling areas of a condominium project is
called
6. Which is NOT an example of a freehold estate? periodic tenancy
7. What lien attaches to a property to prevent the trans- attachment
fer of title when there is a pending lawsuit
that may affect the title?
8. The rate of taxation in Coolville is currently 73 mills. On $315
the ballot for the next election is a tax levy of 6
mills for the public schools. Mr. Jones' house is
worth $150,000 and the local government
assesses tax value at 35%. How much more in
property taxes will Mr. Jones have to pay if the
tax levy passes?
9. The taking of private property for public use is called
condemnation
1/
31
,REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
10. Roberta wishes to build her garage two feet from her a variance
side lot line. City code calls for all side
setbacks to be at least five feet. In order to
legally proceed, Roberta needs to get
2/
31
,REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
11. Mom & Dad's Cafe is located in an area Yes, because the
recently re- zoned as residential. Will it be restau- rant will be
allowed to continue operating as a "grandfa- thered" into
restaurant? the area
12. The rule that says a buyer will not pay more substitution
for a property than a comparable substitute
is the rule of
13. Replacement of a building best describes building the functional
equivalent
of the original structure
14. Gross income best describes income before expenses
15. A 10-unit apartment building has an annual $382,500
gross in- come of $5,000 per unit. A vacancy
and collection loss of 5% is normal for the
area. Annual expenses total
$9,250. The purchasers desire a 10% return
on their investment. How much should they
be willing to pay for the property?
16. What is assessment value? value the property
taxes are based
on
17. For the income approach to appraisal, value is a refer- worth of
the investment
ence to the
18. Which clause in an adjustable rate mortgage allows the
3/
31
, REAL ESTATE TEST 1- 125 QUESTIONS &
CORRECT ANSWERS PASSED ALREADY
GRADED A+
lender to change the rate of interest? escalation
19. The Equal Credit Opportunity Act does NOT
prohibit lenders from discriminating against amount of income
potential borrow- ers on the basis of
20. Sally and George a married couple have elected to buy Principal,
Interest, Taxes,
a home. Their calculated" PITI" is well within the qual- Insurance
4/
31
