NATIONAL REAL ESTATE EXAM QUESTIONS AND ANSWERS| 100% CORRECT 2024

NATIONAL REAL ESTATE EXAM QUESTIONS AND ANSWERS| 100% CORRECT 2024 Olivia took out a 15-year loan secured with a deed of trust. She made her last payment this month. What happens now? - answerThe trustee grants a reconveyance deed to Olivia. - answer - answer - answer What is the reproduction cost? - answerthe cost to build an exact replica of the subject, with the same materials and deficiencies. Which fiduciary duty continues even after a transaction closes? - answerAcconting What is estate at sufferance? - answerEstate at sufferance is when a tenant remains on the property after the lease without permission. Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code? - answerLocal building department. Under which types of agency agreement may a buyer and agent operate? - answerOpen, exclusive right to represent, and exclusive agency What is a survey? - answerA survey is used to create, verify, or correct a legal description. It's a professional on-site measurement of the lot lines and dimensions of a property. Melisa's mother gave her house to Melisa, along with a signed copy of the deed granting ownership to Melisa. Years later, Melisa decides to downsize by selling the property. The title company shows that the property is still in Melisa's mother's name. What does Melisa have to do to clear this up? - answerTo preserve the chain of title, Melisa needs to record the signed deed. Then future records will show an unbroken chain of title. The Housing and Community Development Act of 1974 did what? - answerIncluded gender or a person's sex in the list of protected classes. What does a preliminary report show? - answerCurrent title history and any liens or encumbrances. It outlines what the insurance company will or won't cover on its forthcoming insurance policy if the title is found to be acceptable. When is a lead disclosure required? - answerA lead disclosure is required for residential properties built before 1978 because paint manufacturers used lead in paint before it was banned that year. Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract? - answerHe could lose any funds credited to the purchase price if he breaches the terms of the lease. Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have? - answerA fee simple determinable has limitations as to what can or can't be done with a property. It uses phrases such as "so long as," "while," or "during" to describe the required condition. What does the Federal Trade Commission consider to be an unfair ad? - answerAny ad or business practice that causes or is likely to cause injury is considered an unfair ad, according to the FTC's Unfairness Policy Statement. As part of the sales contract, the seller was supposed to provide a copy of the seller's disclosure to the buyer, but he failed to do so. What type of contract is this? - answerA voidable contract can be cancelled by one or more parties because it's missing an essential element. How are principal meridians and baselines used in the rectangular government survey system? - answerEach legal description in this system originates at the intersection of a principal meridian and a baseline. When the lender gathers all kinds of information about the borrower's assets, debts, income, employment history, and pulls their credit report, the buyer is ___________________. - answerThis is all part of the application process. What is a deed limitation? - answerA great example of deed limitations is the restrictions that may be placed on a property by an owners association. What is a subject to clause? - answerA subject to clause may refer to an easement held by a neighboring property to get to a road or water source. What is Idemnification? - answerIndemnifying one of the contract parties releases that party from all liability or loss. What does the statute of frauds require? - answerThe statute of frauds requires that real estate contracts be in writing. Oral offer don't create an enforceable contract. Local authorities lack police power over which of the following? - answerFederal government construction projects. Local authorities have police power over what? - answerbudgeting, zoning, and subdivision development. All loans that are either FHA-insured or VA-guaranteed require what? - answerA home warranty to protect both the buyer and the home's value. What are the two types of physical depreciation? - answerTwo types of physical depreciation are curable and incurable depreciation. Travis has made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid? - answerWhen the note has been paid off, the holder must sign the note, mark it as paid in full, and return it to the maker. The satisfaction of mortgage is recorded with the county land office, removing the associated lien from the property. What factors affect an adjustable rate mortgage? - answerRate, index, and margin Casey signed a contract form offering a purchase price of $309,000 on Karen's home, and gave his agent a $5,000 earnest money deposit. Karen's out of town, though, and her agent can't reach her. At this point what does Casey have? - answerUntil the terms are negotiated and the contract signed by both parties, acceptance hasn't occurred and the sales contract is considered an offer. Candace and Phil Tolson listed their home for sale with Trent Richards, the broker for Richards Homes. Sadly, Trent became incapacitated due to a car accident. What's the status of the listing agreement? - answerBecause the broker has become incapacitated, the listing agreement terminates by force of law. Which task is NOT the responsibility of an escrow officer? - answerDoesn't have the authority to determine how it should be dis