Perry Real Estate College Final Exam
All of the following are prohibited under the antitrust laws EXCEPT
-Competing property management companies agreeing to standardized management
fees
-competing brokers allocating markets based on the value of homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a broker because of the fees
that broker charges - ✔️✔️a broker's setting a company commission schedule
A rancher owns a parcel of land on which oil was discovered. If the rancher has not
previously conveyed the oil rights, who owns the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher - ✔️✔️the rancher
In order to be a License member of the commission, a person must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker - ✔️✔️all of the above
A licensed real estate professional acting as a point of contact between two or more
people in negotiating the sale, rental, or purchase of a property is known as a(n)
-sales affiliate
-property manager
-appraiser
-broker - ✔️✔️broker
A landowner constructed a building 7 stories high. Several years later the municipality
changed the zoning ordinance, prohibiting buildings that exceed 6 stories in height.
Which of the following is true regarding the existing 7-story building?
-the owner must obtain a variance
-it is nonconforming use
-it is a conditional use
-the building must be demolished - ✔️✔️it is a nonconforming use
All of the following should be a consideration in selecting a tenant for the property
EXCEPT
-size of the available space relative to the tenant's requirements
-compatibility of the tenant's business with those of other tenants
-tenant's ability to make the rental payments
, -Ethnic background of the tenant and his or her employees - ✔️✔️Ethnic background of
the tenant and his or her employees
A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence - ✔️✔️functional obsolescence
A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien. - ✔️✔️specific lien
Abel and Baker are joint tenants. Baker sells his interest to Charlie. What is the
relationship of Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest - ✔️✔️they are tenants in
common
The method of describing land that uses degrees, feet, and monuments is known as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - ✔️✔️metes and bounds system
which of the following is true regarding a special warranty deed?
-The grantors warranties are limited to the time the grantor owned the property
-the grantor retains an interest in the ownership
-the grantor is making additional warranties beyond those given in a warranty deed
-the grantor is warranting that non encumbrances exist against the property - ✔️✔️The
grantor's warranties are limited to the time the grantor owned the property
If an owner takes his property off the market for a definite period in exchange for some
consideration but grants an individual the right to purchase the property within that
period for a stated price, this is called a(n)
-contract of sale
-installment agreement
-right of first refusal
-option - ✔️✔️option
All of the following are prohibited under the antitrust laws EXCEPT
-Competing property management companies agreeing to standardized management
fees
-competing brokers allocating markets based on the value of homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a broker because of the fees
that broker charges - ✔️✔️a broker's setting a company commission schedule
A rancher owns a parcel of land on which oil was discovered. If the rancher has not
previously conveyed the oil rights, who owns the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher - ✔️✔️the rancher
In order to be a License member of the commission, a person must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker - ✔️✔️all of the above
A licensed real estate professional acting as a point of contact between two or more
people in negotiating the sale, rental, or purchase of a property is known as a(n)
-sales affiliate
-property manager
-appraiser
-broker - ✔️✔️broker
A landowner constructed a building 7 stories high. Several years later the municipality
changed the zoning ordinance, prohibiting buildings that exceed 6 stories in height.
Which of the following is true regarding the existing 7-story building?
-the owner must obtain a variance
-it is nonconforming use
-it is a conditional use
-the building must be demolished - ✔️✔️it is a nonconforming use
All of the following should be a consideration in selecting a tenant for the property
EXCEPT
-size of the available space relative to the tenant's requirements
-compatibility of the tenant's business with those of other tenants
-tenant's ability to make the rental payments
, -Ethnic background of the tenant and his or her employees - ✔️✔️Ethnic background of
the tenant and his or her employees
A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence - ✔️✔️functional obsolescence
A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien. - ✔️✔️specific lien
Abel and Baker are joint tenants. Baker sells his interest to Charlie. What is the
relationship of Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest - ✔️✔️they are tenants in
common
The method of describing land that uses degrees, feet, and monuments is known as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - ✔️✔️metes and bounds system
which of the following is true regarding a special warranty deed?
-The grantors warranties are limited to the time the grantor owned the property
-the grantor retains an interest in the ownership
-the grantor is making additional warranties beyond those given in a warranty deed
-the grantor is warranting that non encumbrances exist against the property - ✔️✔️The
grantor's warranties are limited to the time the grantor owned the property
If an owner takes his property off the market for a definite period in exchange for some
consideration but grants an individual the right to purchase the property within that
period for a stated price, this is called a(n)
-contract of sale
-installment agreement
-right of first refusal
-option - ✔️✔️option
