100 QUESTIONS AND ANSWERS
A residential tenant with a month to month lease enjoys which leasehold estate?
A. Estate for years
B. Periodic Tenancy
C. Joint tenancy
C. Tenancy at will - ANSWER Periodic tenancy
Periodic tenancy is a lease that automatically renews itself from period to
period.
Julie wants to maximize her chances of getting paid on a property she is about
to list. Which type of listing agreement gives her maximum protection?
A. an exclusive agency listing
B. a net listing
C. an open listing
D. an exclusive right to sell listing - ANSWER an exclusive right to sell listing
In an open, or exclusive agency listing, the owner can still sell and not pay the
listing company a commission. An exclusive right to sell guarantees the
company gets paid if the property sells.
A contract in which each party to the agreement has an obligation under that
agreement is a:
Tendering performance
Breach of contract
Unilateral contract
Bilateral contract - ANSWER Bilateral contract
When only one party has an obligation (i.e. a reward for a lost pet), the contract
is unilateral. A contract for the purchase of goods or property involves an
obligation of both parties to perform.
,The morgtgagee is the - ANSWER the lender
A title free from defects that an owner has the right to convey is a/an:
Marketable title
Inequitable title
Legal title
Equitable title - ANSWER marketable title
A buyer expects to receive marketable title, and the seller is expected to convey
a title free of defects.
All of the following are examples of real property except:
Sump pump
Bathtub
Shed
Drapes - ANSWER drapes
In a contract for Deed which is true regarding the "Power of Sale" clause ?
A homeowner can file a complaint in the courts to stop a Power of Sale
A lender must file a complaint in the courts to regain possession of a property
secured by a mortgage loan
It helps the homeowner sell their property when they desire
With a "Power of Sale" clause a lender can foreclose without court oversight -
ANSWER With a "Power of Sale" clause a lender can foreclose without court
oversight
A power of sale provision is a clause in the deed of trust or mortgage in which
the borrower pre-authorizes the sale of property by way of a nonjudicial
foreclosure to pay off the balance of the loan in the event of a default. With a
power of sale foreclosure, the lender can foreclose without court oversight.
Which of the following is an involuntary specific lien?
Easement
Mortgage
Mechanic's lien
IRS Taxes - ANSWER Mechanic's lien
The IRS lien is a general involuntary lien against all items owned by an
individual (including, but not limited to, real estate). The mechanic's lien is an
,involuntary specific lien against property worked on by a contractor. The
mortgage is a voluntary specific lien which is given freely by the landowner to
the buyer. The easement is not a lien, although it is an encumbrance on the
property.
Broker Z is thankful when a past client W, recommends her to a friend from
work. The friend wants to buy a home in the $400,000 range and Z wants to
show W her gratitude. Broker Z sends W a gift basket worth over $400. This
type of gratuity would be considered which of the following?
A violation if the fee exceeds $500.
A violation unless disclosed to the referred party.
Generous, but not a violation.
A referral fee. - ANSWER Generous, but not a violation
A thank you gift is fine if it is not expected and not cash or the equivalent.
There is no dollar limit, but if it seen as excessive it could be called into
question. What is considered excessive is not found in the law. The bigger issue
is how it is presented, as it can't be a "quid pro quo" or a "this for that"
arrangement. The referring party can't refer because of the gift or any
expectation of it.
Managing brokers are required to develop and enforce the use of a written
office policy on agency for which of the following?
Buyers who stop by an open house.
Clients, and customers who may disclose confidential information.
Only for client's who pay a fee.
Just for those who actually close on a sale. - ANSWER Clients, and customers
who may disclose confidential information
Listing agreements typically create which type of relationship between the seller
and the listing broker?
General agency.
Special agency.
Limited agency.
Universal agency. - ANSWER Special agency
What type of agency relationship exists when a broker manages real property
for the owner?
Special
, Limited
Major
General - ANSWER General
What type of relationship best describes how a real estate broker represents
his/her principal in the sale of the principal's single-family home?
Universal agency
Special or specific agency
Dual agency
General agency - ANSWER Special or specific agency
A real estate agent works as a special agent, while a property manager would
most likely be a general agent.
Which lien attaches to a property to prevent the transfer of title when there is a
pending lawsuit that may affect the title?
Mechanic's lien
Lis pendens
Commercial broker lien law
Attachment - ANSWER Attachment
Which of the following is not a governmental restriction on property?
Eminent domain
Police power
Adverse possession
Escheat - ANSWER adverse possession
Escrow moneys must be deposited in which of the following?
An insured account in a chartered bank or trust company.
A registered account with a bank or licensed escrow agent.
A deposit account in any federally chartered bank.
A demand account in an insured Indiana bank. - ANSWER a demand account
in an insured Indiana bank
A real estate owner who leases the property is called:
The lessor
The lessee
Mortgagee
A residential tenant with a month to month lease enjoys which leasehold estate?
A. Estate for years
B. Periodic Tenancy
C. Joint tenancy
C. Tenancy at will - ANSWER Periodic tenancy
Periodic tenancy is a lease that automatically renews itself from period to
period.
Julie wants to maximize her chances of getting paid on a property she is about
to list. Which type of listing agreement gives her maximum protection?
A. an exclusive agency listing
B. a net listing
C. an open listing
D. an exclusive right to sell listing - ANSWER an exclusive right to sell listing
In an open, or exclusive agency listing, the owner can still sell and not pay the
listing company a commission. An exclusive right to sell guarantees the
company gets paid if the property sells.
A contract in which each party to the agreement has an obligation under that
agreement is a:
Tendering performance
Breach of contract
Unilateral contract
Bilateral contract - ANSWER Bilateral contract
When only one party has an obligation (i.e. a reward for a lost pet), the contract
is unilateral. A contract for the purchase of goods or property involves an
obligation of both parties to perform.
,The morgtgagee is the - ANSWER the lender
A title free from defects that an owner has the right to convey is a/an:
Marketable title
Inequitable title
Legal title
Equitable title - ANSWER marketable title
A buyer expects to receive marketable title, and the seller is expected to convey
a title free of defects.
All of the following are examples of real property except:
Sump pump
Bathtub
Shed
Drapes - ANSWER drapes
In a contract for Deed which is true regarding the "Power of Sale" clause ?
A homeowner can file a complaint in the courts to stop a Power of Sale
A lender must file a complaint in the courts to regain possession of a property
secured by a mortgage loan
It helps the homeowner sell their property when they desire
With a "Power of Sale" clause a lender can foreclose without court oversight -
ANSWER With a "Power of Sale" clause a lender can foreclose without court
oversight
A power of sale provision is a clause in the deed of trust or mortgage in which
the borrower pre-authorizes the sale of property by way of a nonjudicial
foreclosure to pay off the balance of the loan in the event of a default. With a
power of sale foreclosure, the lender can foreclose without court oversight.
Which of the following is an involuntary specific lien?
Easement
Mortgage
Mechanic's lien
IRS Taxes - ANSWER Mechanic's lien
The IRS lien is a general involuntary lien against all items owned by an
individual (including, but not limited to, real estate). The mechanic's lien is an
,involuntary specific lien against property worked on by a contractor. The
mortgage is a voluntary specific lien which is given freely by the landowner to
the buyer. The easement is not a lien, although it is an encumbrance on the
property.
Broker Z is thankful when a past client W, recommends her to a friend from
work. The friend wants to buy a home in the $400,000 range and Z wants to
show W her gratitude. Broker Z sends W a gift basket worth over $400. This
type of gratuity would be considered which of the following?
A violation if the fee exceeds $500.
A violation unless disclosed to the referred party.
Generous, but not a violation.
A referral fee. - ANSWER Generous, but not a violation
A thank you gift is fine if it is not expected and not cash or the equivalent.
There is no dollar limit, but if it seen as excessive it could be called into
question. What is considered excessive is not found in the law. The bigger issue
is how it is presented, as it can't be a "quid pro quo" or a "this for that"
arrangement. The referring party can't refer because of the gift or any
expectation of it.
Managing brokers are required to develop and enforce the use of a written
office policy on agency for which of the following?
Buyers who stop by an open house.
Clients, and customers who may disclose confidential information.
Only for client's who pay a fee.
Just for those who actually close on a sale. - ANSWER Clients, and customers
who may disclose confidential information
Listing agreements typically create which type of relationship between the seller
and the listing broker?
General agency.
Special agency.
Limited agency.
Universal agency. - ANSWER Special agency
What type of agency relationship exists when a broker manages real property
for the owner?
Special
, Limited
Major
General - ANSWER General
What type of relationship best describes how a real estate broker represents
his/her principal in the sale of the principal's single-family home?
Universal agency
Special or specific agency
Dual agency
General agency - ANSWER Special or specific agency
A real estate agent works as a special agent, while a property manager would
most likely be a general agent.
Which lien attaches to a property to prevent the transfer of title when there is a
pending lawsuit that may affect the title?
Mechanic's lien
Lis pendens
Commercial broker lien law
Attachment - ANSWER Attachment
Which of the following is not a governmental restriction on property?
Eminent domain
Police power
Adverse possession
Escheat - ANSWER adverse possession
Escrow moneys must be deposited in which of the following?
An insured account in a chartered bank or trust company.
A registered account with a bank or licensed escrow agent.
A deposit account in any federally chartered bank.
A demand account in an insured Indiana bank. - ANSWER a demand account
in an insured Indiana bank
A real estate owner who leases the property is called:
The lessor
The lessee
Mortgagee
