Rockwell cram exam 1 100% Correct
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property
interest: - ANSWER-will be automatically transferred (conveyed) to Kim and Diane
A writ of attachment, an easement in gross, and a special assessment all have what in
common? - ANSWER-They're encumbrances
A potential buyer gives a seller an offer that doesn't meet the seller's demands in the
listing. What has the buyer given? - ANSWER-Offer to purchase
Which of the following clauses relates to a mortgage loan default and requires
immediate payment of the debt? - ANSWER-Acceleration clause
B purchases a small commercial property, and he finances it with a 65% loan. The
lender charges 9.25% annual interest and three discount points. The discount points: -
ANSWER-increase the lender's upfront yield
Which of the following statements regarding the Real Estate Settlement Procedures Act
(RESPA) is true? - ANSWER-The borrower is entitled to a good faith estimate of the
settlement costs within three days of submitting an application
A property manager manages two large apartment buildings. They're older but well-
maintained properties with a 96% occupancy rate. Based on analysis of market rates,
the property manager should: - ANSWER-raise rents, if competitive market analysis
confirms this
Moe has an appurtenant easement over Ray's land. Ray's land is called a/an: -
ANSWER-servient estate
Which of the following is true regarding an oral agreement for the sale of real property?
It is: - ANSWER-unenforceable; it violates the statute of frauds
A seller lists a 1.1 acre vacant residential lot, asking $10,000. His broker decides to
offer the financing himself. The broker runs an ad saying, "A $3,000 downpayment will
get you beautiful residential acreage." Is more credit information required? - ANSWER-
Yes, because the downpayment amount was given
An owner sells a property, and the buyer is going to make a 20% downpayment. The
lender requires the buyer to pay two discount points, which turn out to total $1,000.
What was the purchase price? - ANSWER-$62,500
Frank gives Stella an option to buy his house. Stella, as the optionee, is obligated to: -
ANSWER-pay consideration for the option right
, A corn field with a depth of 900 feet and a frontage of 484 feet is bisected by an access
road, leaving two triangular lots. If the land sells for $2,000 per acre, how much is each
lot worth? - ANSWER-$10,000
Martha gave Hannah the right to purchase her vacant lot for $65,000. Hannah paid
Martha $1,200 for this right. Hannah is the: - ANSWER-optionee
Ajax Realty lists a property for a seller at a commission rate of 8%. The multiple listing
service provides that a listing brokerage will split commissions at a 50-50 rate. Baron
Realty, a cooperating brokerage, finds a buyer for the property, at a price of $300,000.
How much will the seller owe Ajax Realty at closing? - ANSWER-$24,000
A buyer enters into a buyer agency agreement with a real estate licensee to negotiate
the purchase of a particular FSBO property. The buyer then enters into a purchase and
sale agreement, but the property he agreed to buy is subsequently condemned. Which
of the following is true? - ANSWER-The agency is terminated
A right held by one or more persons to use and possess property to the exclusion of
others is a/an: - ANSWER-fee simple estate
A new subdivision requires payment of homeowners association dues. If unpaid, what
type of lien do they create? - ANSWER-Specific lien that encumbers the property
21. Interest on a loan for a home purchase is which type of interest? - ANSWER-Simple
Which of the following is a primary market lender? - ANSWER-Mortgage banking
company
Which of the following rental transactions would be covered by (not exempt from) the
Fair Housing Act even if no real estate agent were involved? - ANSWER-Rental of a
unit in a triplex, using no discriminatory advertising
A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide. How
many square yards of carpet will need to be purchased? - ANSWER-30
Alex owns 35 acres of vacant land that he would like to deed to a local wildlife
conservancy. However, a title search reveals that timber rights and an easement to use
the property were sold to Giant Lumber Company in 1963. Since this lumber company
went out of business in 1987, Alex should: - ANSWER-seek advice from an attorney,
since the easement may still be valid
Which of the following is a requirement for a valid lease? - ANSWER-Lease expiration
Bartholomew leases several acres from Stan so he can grow strawberries. However,
when Bartholomew arrives at the property to plant his strawberries, he realizes that
Stan is already farming the acreage. Bartholomew does not have to pay rent to Stan
because of the: - ANSWER-covenant of quiet enjoyment
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property
interest: - ANSWER-will be automatically transferred (conveyed) to Kim and Diane
A writ of attachment, an easement in gross, and a special assessment all have what in
common? - ANSWER-They're encumbrances
A potential buyer gives a seller an offer that doesn't meet the seller's demands in the
listing. What has the buyer given? - ANSWER-Offer to purchase
Which of the following clauses relates to a mortgage loan default and requires
immediate payment of the debt? - ANSWER-Acceleration clause
B purchases a small commercial property, and he finances it with a 65% loan. The
lender charges 9.25% annual interest and three discount points. The discount points: -
ANSWER-increase the lender's upfront yield
Which of the following statements regarding the Real Estate Settlement Procedures Act
(RESPA) is true? - ANSWER-The borrower is entitled to a good faith estimate of the
settlement costs within three days of submitting an application
A property manager manages two large apartment buildings. They're older but well-
maintained properties with a 96% occupancy rate. Based on analysis of market rates,
the property manager should: - ANSWER-raise rents, if competitive market analysis
confirms this
Moe has an appurtenant easement over Ray's land. Ray's land is called a/an: -
ANSWER-servient estate
Which of the following is true regarding an oral agreement for the sale of real property?
It is: - ANSWER-unenforceable; it violates the statute of frauds
A seller lists a 1.1 acre vacant residential lot, asking $10,000. His broker decides to
offer the financing himself. The broker runs an ad saying, "A $3,000 downpayment will
get you beautiful residential acreage." Is more credit information required? - ANSWER-
Yes, because the downpayment amount was given
An owner sells a property, and the buyer is going to make a 20% downpayment. The
lender requires the buyer to pay two discount points, which turn out to total $1,000.
What was the purchase price? - ANSWER-$62,500
Frank gives Stella an option to buy his house. Stella, as the optionee, is obligated to: -
ANSWER-pay consideration for the option right
, A corn field with a depth of 900 feet and a frontage of 484 feet is bisected by an access
road, leaving two triangular lots. If the land sells for $2,000 per acre, how much is each
lot worth? - ANSWER-$10,000
Martha gave Hannah the right to purchase her vacant lot for $65,000. Hannah paid
Martha $1,200 for this right. Hannah is the: - ANSWER-optionee
Ajax Realty lists a property for a seller at a commission rate of 8%. The multiple listing
service provides that a listing brokerage will split commissions at a 50-50 rate. Baron
Realty, a cooperating brokerage, finds a buyer for the property, at a price of $300,000.
How much will the seller owe Ajax Realty at closing? - ANSWER-$24,000
A buyer enters into a buyer agency agreement with a real estate licensee to negotiate
the purchase of a particular FSBO property. The buyer then enters into a purchase and
sale agreement, but the property he agreed to buy is subsequently condemned. Which
of the following is true? - ANSWER-The agency is terminated
A right held by one or more persons to use and possess property to the exclusion of
others is a/an: - ANSWER-fee simple estate
A new subdivision requires payment of homeowners association dues. If unpaid, what
type of lien do they create? - ANSWER-Specific lien that encumbers the property
21. Interest on a loan for a home purchase is which type of interest? - ANSWER-Simple
Which of the following is a primary market lender? - ANSWER-Mortgage banking
company
Which of the following rental transactions would be covered by (not exempt from) the
Fair Housing Act even if no real estate agent were involved? - ANSWER-Rental of a
unit in a triplex, using no discriminatory advertising
A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide. How
many square yards of carpet will need to be purchased? - ANSWER-30
Alex owns 35 acres of vacant land that he would like to deed to a local wildlife
conservancy. However, a title search reveals that timber rights and an easement to use
the property were sold to Giant Lumber Company in 1963. Since this lumber company
went out of business in 1987, Alex should: - ANSWER-seek advice from an attorney,
since the easement may still be valid
Which of the following is a requirement for a valid lease? - ANSWER-Lease expiration
Bartholomew leases several acres from Stan so he can grow strawberries. However,
when Bartholomew arrives at the property to plant his strawberries, he realizes that
Stan is already farming the acreage. Bartholomew does not have to pay rent to Stan
because of the: - ANSWER-covenant of quiet enjoyment
