Broker Exam

BROKER EXAM 2024 WITH 100% CORRECT ANSWERS Of the following, which are NOT classified as real property? A. Fixtures B. Emblements C. Shrubs planted in the ground D. Air rights - correct answer Emblements The use of the property could be changed without changing the zoning by using a: A. Restriction B. Variance C. Taking D. Buffer - correct answer Variance The basic authority for zoning laws is derived from a state's: A. Powers of eminent domain B. Right of taxation C. Police power D. Escheat - correct answer Police Power The city builds a park on a strip of land between a residential neighborhood and a shopping center. The park would be a(n): A. Easement B. Commercial zone C. Residential zone D. Buffer zone - correct answer Buffer Zone Bob owns a small grocery store. The location is going to be zoned and the zoning will be residential. Bob wants to continue to operate his grocery store. He may apply for: A. Discrepancy B. Conditional use C. Nonconforming use permit D. Variance - correct answer Nonconforming use permit What type of easement exists in which there is a dominant estate and a servient estate? A. Easement in gross B. Easement appurtenant C. Easement for profit D. Easement by license - correct answer Easement appurtenant What is indestructability? A. An economic characteristic of land B. An area preference of land C. A physical characteristic of land D. A permanence of investment in land - correct answer A physical characteristic land Encumbrances include: A. Easements B. Encroachments C. Deed restrictions D. All of the above - correct answer all of the above Jeff has leased a commercial building from Tom, the owner. Jeff has agreed to pay Tom a small amount of rent and also to pay the property taxes, the insurance on the building and for repairs to the building. Jeff has a: A. Periodic estate B. Net lease C. Percentage lease D. Gross lease - correct answer Periodic estate An instrument which guarantees against defects in title and conveys title is a: A. Policy of title insurance B. Chain of title C. Warranty deed D. Deed of trust - correct answer Warranty deed When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the: A. Alienation clause B. Acceleration clause C. Subordination clause D. Pre-payment clause - correct answer Acceleration Clause This estate may be terminated by either party. It has no duration limitation. A. Estate at will B. Estate from period to period C. Estate for years D. Freehold estate - correct answer Estate at will George hired a general contractor to build an addition to his house. The general contractor failed to pay the electrical subcontractor for work that was subcontracted to him. May the subcontractor secure a mechanic's lien on George's house? A. Yes, because the work was done on George's property. B. Yes, because a mechanic's lien is a general lien that attaches to all property of the contractor. C. No, because George did not ask for the lien. D. No, because the lien would attach to real property of the general contractor - correct answer Yes, because the work was done on Georges property John gives a life estate to Joe for as long as Jim is alive. This type of life estate is: A. Pur autre vie B. Defeasible C. Unintended D. Severed - correct answer Pur autre vie Tom and Sue are not married. They own a property together. If one of them dies, the other will own the property. They most likely own the property as: A. Joint tenancy with the right of survivorship B. Community property C. Tenancy by the entirety D. Tenancy in common - correct answer Joint tenancy with the right of survivorship Which of the following estimates of value is most likely to provide only a rough estimate of the value of the rental property? A. Cost approach B. Gross rent multiplier C. Income approach D. Market approach - correct answer Gross rent multiplier The use of a property that will give it its greatest current value is its: A. Highest use B. Best use C. Highest and best use D. Maximum use - correct answer Highest and best use The period during which site improvements contribute to the value of the property is called the: A. Economic utility B. Asset investment life C. Accrued depreciation period D. Economic life - correct answer Economic Life The income approach would be used to determine the value of: A. A single-family home B. Vacant lots C. A condominium D. A strip shopping center - correct answer A strip shopping center A method of valuing a property based on the monetary returns it can be expected to produce is the: A. Income approach B. Cost approach C. Curable approach D. Market approach - correct answer income approach Which federal law required lenders to only use licensed or certified appraisers to conduct federally related appraisals over $250,000? A. RESPA B. CFPB C. FIRREA