Rockwell Cram Exam #2 UPDATED
ACTUAL Questions and CORRECT
Answers
Which of the following people might bring a suit for specific performance? - CORRECT
ANSWER - A buyer in a real estate transaction in which the seller backed out one day
before closing
Once a lender issues a veteran a VA-guaranteed loan, the veteran: - CORRECT
ANSWER - immediately becomes liable for the guaranteed amount
A property manager decides to offer some additional services beyond what is specified in the
property management agreement. She may do so after: - CORRECT ANSWER - the
management agreement is amended in a writing signed by the owner and designated broker
An optionee's rights can be assigned under all of the following circumstances, except when the: -
CORRECT ANSWER - option money is in the form of a promissory note
Five people buy an investment property. They take title so that they each have equal ownership
shares, and so that if one of them dies, his share will pass to his heirs. How did they take title? -
CORRECT ANSWER - Tenancy in common
For income tax purposes, a homeowner can deduct: - CORRECT ANSWER - property
taxes
An Asian-American buyer asks to be shown homes that are located in neighborhoods that he
knows are primarily Asian. If a real estate agent complies with his wishes, this is: - CORRECT
ANSWER - legal, as it is done at the buyer's request
A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the
title, he should file a/an: - CORRECT ANSWER - quiet title action
, A broker would need to have a securities license to participate in: - CORRECT
ANSWER - a transaction involving an investment contract
A buyer who records a deed is giving: - CORRECT ANSWER - constructive notice
A veteran's guaranty benefits may be restored by a: - CORRECT ANSWER - substitution
of eligibility/entitlement by another veteran assuming the loan
John leases a commercial property. In the lease, he agrees to pay part of the utilities and taxes, as
well as a fixed monthly rent amount. This is a: - CORRECT ANSWER - net lease
A quitclaim deed conveys: - CORRECT ANSWER - the grantor's interest in a given
property, if any
The entity that determines the maximum number of people who may legally live in a rental unit
is the: - CORRECT ANSWER - local health department and zoning authority
On a settlement statement, the seller's net proceeds are calculated by: - CORRECT
ANSWER - subtracting the seller's debits from the seller's credits
Which law prohibits discrimination in real estate transactions based on race, with no exceptions?
- CORRECT ANSWER - Civil Rights Act of 1866
If a buyer wants to protect herself against unrecorded encumbrances, she should: - CORRECT
ANSWER - request a title insurance policy that has the fewest exceptions
A minor leases an apartment right before he turns 18. Immediately after he reaches the age of
majority, he contacts the landlord and says he's terminating the lease. Which is true? -
CORRECT ANSWER - This is possible because he is doing so within a reasonable
amount of time after having reached the age of majority
ACTUAL Questions and CORRECT
Answers
Which of the following people might bring a suit for specific performance? - CORRECT
ANSWER - A buyer in a real estate transaction in which the seller backed out one day
before closing
Once a lender issues a veteran a VA-guaranteed loan, the veteran: - CORRECT
ANSWER - immediately becomes liable for the guaranteed amount
A property manager decides to offer some additional services beyond what is specified in the
property management agreement. She may do so after: - CORRECT ANSWER - the
management agreement is amended in a writing signed by the owner and designated broker
An optionee's rights can be assigned under all of the following circumstances, except when the: -
CORRECT ANSWER - option money is in the form of a promissory note
Five people buy an investment property. They take title so that they each have equal ownership
shares, and so that if one of them dies, his share will pass to his heirs. How did they take title? -
CORRECT ANSWER - Tenancy in common
For income tax purposes, a homeowner can deduct: - CORRECT ANSWER - property
taxes
An Asian-American buyer asks to be shown homes that are located in neighborhoods that he
knows are primarily Asian. If a real estate agent complies with his wishes, this is: - CORRECT
ANSWER - legal, as it is done at the buyer's request
A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the
title, he should file a/an: - CORRECT ANSWER - quiet title action
, A broker would need to have a securities license to participate in: - CORRECT
ANSWER - a transaction involving an investment contract
A buyer who records a deed is giving: - CORRECT ANSWER - constructive notice
A veteran's guaranty benefits may be restored by a: - CORRECT ANSWER - substitution
of eligibility/entitlement by another veteran assuming the loan
John leases a commercial property. In the lease, he agrees to pay part of the utilities and taxes, as
well as a fixed monthly rent amount. This is a: - CORRECT ANSWER - net lease
A quitclaim deed conveys: - CORRECT ANSWER - the grantor's interest in a given
property, if any
The entity that determines the maximum number of people who may legally live in a rental unit
is the: - CORRECT ANSWER - local health department and zoning authority
On a settlement statement, the seller's net proceeds are calculated by: - CORRECT
ANSWER - subtracting the seller's debits from the seller's credits
Which law prohibits discrimination in real estate transactions based on race, with no exceptions?
- CORRECT ANSWER - Civil Rights Act of 1866
If a buyer wants to protect herself against unrecorded encumbrances, she should: - CORRECT
ANSWER - request a title insurance policy that has the fewest exceptions
A minor leases an apartment right before he turns 18. Immediately after he reaches the age of
majority, he contacts the landlord and says he's terminating the lease. Which is true? -
CORRECT ANSWER - This is possible because he is doing so within a reasonable
amount of time after having reached the age of majority
