REAL ESTATE FINAL EXAM 1 QUESTIONS WITH CERTIFIED ANSWERS

REAL ESTATE FINAL EXAM 1 QUESTIONS WITH CERTIFIED ANSWERS "A handicapped person moved into an apartment and at his own expense lowered the light switches, lowered the kitchen cabinets, installed handrails, and widened the doorways. At the expiration of the lease, which of the following would the tenant LEAST LIKELY have to return to its original condition? a. Light switches b. Kitchen cabinets c. Handrails d. Doorways - CORRECT ANSWER doorways" "Which of the following must be disclosed when an agent is showing a house? a. Mortgage balance b. The asking price of other homes in the neighborhood c. That the property is in a flood plain zone d. Original cost of the property - CORRECT ANSWER That the property is in a flood plain zone" "Broker Alma had a listing agreement to sell Noah's house. Noah found a buyer for the house and Alma collected the brokerage fee. The type of listing agreement Alma had is a(n) a. exclusive-right -to-sell listing. b. exclusive agency listing c. open listing d. net listing - CORRECT ANSWER exclusive-right -to-sell listing" "The federal Truth-in-Lending Act a. requires a lender to estimate a borrower's loan closing charges on all mortgages. b. regulates advertising that contains information regarding mortgage terms c. prevents brokers from using phrases like"FHA-VA financing available" in classified ads d. dictates that all mortgage loan applications be made on specially prepared government forms. - CORRECT ANSWER regulates advertising that contains information regarding mortgage terms" "Recording a deed provides the greatest benefit for the a. grantor b. public c. attorney d. grantee - CORRECT ANSWER grantee" "Which of the following is NOT an example of a subdivision rule and regulation? a. The agreement that the property cannot be sold and used as a waste disposal site b. The agreement that a tree house cannot be built on the property c. The agreement that walls and fences shall not exceed four feet in height d. The agreement that no structure of a temporary character shall be constructed on any lot - CORRECT ANSWER The agreement that the property cannot be sold and used as a waste disposal site" "A seller wants to net $65,000 on his house after paying the broker's fee of 6 percent. What will the gross selling price be? a. $69,149 b. $68,900 c. $67,035 d. $66,091 - CORRECT ANSWER $69,149" "The value of a piece of land a. is the present worth of future benefits. b. includes a measure of past expenditures. c. is what a buyer pays for the property. d. is the same as the sales price. - CORRECT ANSWER is the present worth of future benefits." "Wilma is buying a condominium in a new sub-division and obtaining financing from a local savings and loan association. Which of the following BEST describes Wilma? a. Vendor b. Mortgagee c. Grantor d. Mortgagor - CORRECT ANSWER Mortgagor" "All of the following terminate an offer EXCEPT a. revocation of the offer before acceptance. b. death of the offeror before acceptance. c. a counteroffer by the offeree. d. an offer from a third party. - CORRECT ANSWER an offer from a third party." "Ellen is purchasing a house under a contract for deed. Until the contract is paid, Ellen has a. legal title to premises b. no interest in the property c. a legal life estate in the premises. d. equitable title in the premises. - CORRECT ANSWER equitable title in the premises." "Broker Len receives a deposit with written offer from Fergus, that includes a ten-day acceptance clause. O the fifth day, and prior to acceptance by Carla, the seller, Fergus, notifies the Len he is withdrawing his offer and demands that his deposit be returned. In this situation a. Fergus cannot withdraw the offer: it must be held open for the full ten days. b. Fergus has the right to revoke his offer and secure the return of the deposit at anytime before he is notified of Carla's acceptance. c. Len notifies Carla that Fergus is withdrawing his offer, and Len and Fergus each retain one-half of the deposit. d. Len declares the deposit forfeited and retains it for his services and commission - CORRECT ANSWER Fergus has the right to revoke his offer and secure the return of the deposit at anytime before he is notified of Carla's acceptance." "Amanda and George are joint tenants. George sells his interest to Percy. What is the relationship of Amanda and Percy with respect to the land? a. They are automatically joint tenants b. They are tenants in common c. There is no relationship, because the sale from George to Percy of joint tenancy property is ineffective. d. Each owns a divided one-half interest. - CORRECT ANSWER They are tenants in common" "Which of the following is NOT found in the appraisal report? a. Date of the inspection b. Condition of the subject property c. Adjustment of the subject property d. Signature of the appraiser - CORRECT ANSWER Adjustment of the subject property" "Unless stated otherwise in the listing contract, the buyer should receive on the purchase of a property a. air rights, surface rights, and subsurface rights. b. air rights and surface rights c. air rights and subsurface rights. d. air rights and mineral rights. - CORRECT ANSWER air rights, surface rights, and subsurface rights." "If a mortgage on a house is 80percent of the appraised value and the mortgage interest of 8 percent amounts to $460 per month, what is the appraised value of the house? a. $86,250 b. $71,875 c. $69,000 d. $92,875 - CORRECT ANSWER $86,250" "A building is 100 feet by 150 feet and sits on a lot valued at $25,000. If the replacement cost of the property is $25 per square feet and it has depreciated 5 percent, what is the value of the property? a. $375,000 b. $381,250 c. $481,250 d. $318,250 - CORRECT ANSWER $381,250" "A, B and C are co-owners of property. When C dies testate, A and B are the devises to her one-half interest in the property. How do they own the property? a. Joint tenancy b. Tenancy in common c. Severally d. Partnership tenancy - CORRECT ANSWER Joint tenancy" "Which of the following is an example of a free-hold inheritable estate? a. Life estate b. Dower estate c. Estate at will d. Fee simple defeasible estate - CORRECT ANSWER Fee simple defeasible estate" "Tom and Sally moved into a condominium that boasted of many common facilities, including tennis courts, club house, work out room, and a putting green. Under a typical condominium arrangement, these common elements are owned by a. an association of homeowners in the condominium b. a corporation in which Frances and the owners of the other units own stock. c. the couple and the owners of the other units in the form of an undivided interest. d. the couple and the owners of the other units in the form of divided interests. - CORRECT ANSWER the couple and the owners of the other units in the form of an undivided interest." "In a graduated-payment loan a. mortgage payments decrease b. mortgage payments balloon in five years. c. mortgage payments increase for a period of time and then level out. d. the interest rate on the loan adjusts annually - CORRECT ANSWER mortgage payments increase for a period of time and then level out." "Jack feels that he has been the victim of an unfair discriminatory practice by a local broker. His complaint must be filed with HUD within a. 3 months of alleged discrimination b. 6 months of alleged discrimination c. 9 months of alleged discrimination d. 12 months of alleged discrimination - CORRECT ANSWER 6 months of alleged discrimination" "A mortgage using both real and personal property as security is a a. blanket mortgage b. package mortgage c. dual mortgage d. chattel mortgage - CORRECT ANSWER package mortgage" "Tammy home is appraised at $75,000, she obtains a mortgage for $50,000 with two points, how much will she be charged by the lender at closing for the points? a. $1,500 b. $100 c. $1,000 d. $150 - CORRECT ANSWER $1,000" "A borrower obtained a second mortgage loan for $7,000. The loan called for payments of $50 per month, including 6 percent interest over a period of five years, with the final installment made as a balloon payment including the remaining outstanding principal. What type of loan is this? a. Fully amortized loan b. Straight loan c. Partially amortized loan d. Accelerated loan - CORRECT ANSWER Partially amortized loan" "Sandy bought property in a secluded area adjacent to the Pacific Ocean. Shortly thereafter, he noticed that people form town often walked along the shore in front of his property. He later learned that the locals had been walking along this beach for years. Sandyl went to court to try to stop people form walking along water's edge in front of his property. Sandy is likely to be a. unsuccessful, because the local citizens were walking there before he bought the property, and thus had an easement. b. unsuccessful, because under the doctrine of littoral rights, he owns the property only to the high-water mark, and the public can use the land beyond that mark. c. successful, because of the doctrine of riparian rights d. successful, because he has the right to control access to his own property - CORRECT ANSWER unsuccessful, because the local citizens were walking there before he bought the property, and thus had an easement." "All of the following are true about adverse possession EXCEPT a. the person taking possession of property must do so without consent of the owner b. occupancy of the property by the person taking possession must be continuous over a specified period c. the person taking possession of the property must receive a Quitclaim Deed from the title owner of the property. d. occupancy of the property by the person taking possession must be adverse to the title owner's rights - CORRECT ANSWER the person taking possession of the property must receive a Quitclaim Deed from the title owner of the property." "Reconciliation is an appraisal term used to describe the a. appraiser' s determination of a property' s highest value. b. average values of properties similar to the one being appraised. c. appraiser' s analysis and comparison of the results of each appraisal approach. d. method used to determine a property's most appropriate capitalization rate. - CORRECT ANSWER appraiser' s analysis and comparison of the results of each appraisal approach." "If the annual rate of interest on a mortgage loan is 8.5 percent, and the monthly interest payment is $201.46, what is the principal amount of the loan? a. $2,417.52 b. $28,441.41 c. $2,844.14 d. $14,270.00 - CORRECT ANSWER $28,441.41" "All of the following are contracts between an agent and a principal EXCEPT a. open listing. b. net listing. c. multiple listing. d. exclusive listing. - CORRECT ANSWER multiple listing." "Mary and Dudley enter into a contract wherein Dudley will build a structure on some vacant land. Dudley begins work and finds that because of the nature of the soil, the supports for the structure must be dug much deeper than he had thought. The additional work will cause Dudley to lose money on the project. Under these circumstances a. Dudley does not have to continue with the contract, under the doctrine of impossibility. b. Dudley does not have to continue with the contract because Mary does not have the right to force Dudley to lose money. c. Dudley can force Mary to renegotiate the contract because of Dudley's mistake, if the mistake was reasonable. d. Dudley is liable for breach of contract if he fails to perform, and the fact that the job is more difficult than Dudley had expected is irrelevant. - CORRECT ANSWER Dudley is liable for breach of contract if he fails to perform, and the fact that the job is more difficult than Dudley had expected is irrelevant." "Allen offers to sell Naomi certain undeveloped land in the country and represents to her that a new freeway will run right by the land, even though Allen knows that the plans for the new freeway have been dropped. Naomi, relying on the representation, purchases the land from Allen. Under these circumstances. a. Allen can be forced to proceed with the sale even though there was fraud. b. the contract is voidable at the option of Allen. c. the misrepresentation automatically voids the contract d. Naomi must purchase the property and cannot sue Allen for fraud. - CORRECT ANSWER Allen can be forced to proceed with the sale even though there was fraud." "If the market value of a house is $84,500, the assessment ratio is 35 percent, and the tax rate is 30 mills, what are the monthly taxes? a. $887.25 b. $942.50 c. $73.94 d. $87.72 - CORRECT ANSWER $73.94" "Richard seeks relief from zoning regulations on the ground of nonconforming use. Effective arguments to the zoning authorities would include all of the following EXCEPT that a. the nonconforming use existed prior to the passing of the zoning ordinance. b. he would earn more by using the property for the purposes that don not conform with the zoning ordinance c. the nonconforming use didn't harm the public health, safety, and welfare d. conforming to the zoning ordinance would create an undue hardship - CORRECT ANSWER he would earn more by using the property for the purposes that don not conform with the zoning ordinance" "Jimmy and his neighbor both own irregularly shaped lots. To create a bird sanctuary, Jimmy would like to purchase part of his neighbor's property. If Jimmy has the properties surveyed, all of the following terms would most likely be found in the survey EXCEPT a. datum. b. monument. c. point of beginning. d. linear distance. - CORRECT ANSWER linear distance." "What is the legal procedure or action that may be brought by ether the buyer or the seller to enforce the terms of a contract? a. Injunction b. Suit for specific performance c. Lis pendens d. Attachment - CORRECT ANSWER Suit for specific performance" "Which of the following contracts would become void on the death of one of the principals in the contract? a. Listing contracts and offers b. Listing contracts and sales contracts c. Listing contracts and deeds d. Listing contracts and mortgage - CORRECT ANSWER Listing contracts and offers" "Which of the following parties to a long-term ground lease is the holder of the leased fee? a. Lessor b. Lessee c. Grantee d. Grantor - CORRECT ANSWER Lessor" "Seller's broker was working with a buyer on an exclusive-authorization-to-sell-listing, and presented an offer at less than the listed price. At the same time, the owner was dealing with another buyer who offered more money for the property and all in cash. The owner sold to the buyer at the higher price for all cash. The broker is entitled to: a. a reasonable commission based upon the lower offer. b. stop the sale of the property. c. void the sale. d. a commission based upon the higher selling price. - CORRECT ANSWER a commission based upon the higher selling price." "Buying real property "subject to the mortgage" is: a. a type of conditional loan. b. a mortgage bought by FNMA and sold to GNMA. c. the taking of title to property by grantee with no personal responsibility for paying the mortgage loan. d. the right to foreclose without going to court. - CORRECT ANSWER the taking of title to property by grantee with no personal responsibility for paying the mortgage loan." "In preparing the mortgage document, it should be noted that: a. the seller assumes no financial risk. b. the title is conveyed immediately to the buyer. c. the seller is the lender. d. mortgage is required. - CORRECT ANSWER mortgage is required." "A buyer purchased a furnished fee simple home. He is assuming the existing mortgage. The settlement company will have drawn up all the following with exception of the: a. bill of sale. b. note and mortgage. c. assumption agreement. d. warranty deed. - CORRECT ANSWER note and mortgage." "Which of the following parties to a real estate sales transaction would have the MOST exposure to liability? a. Grantor of quitclaim deed b. Grantor of a loan assumption c. Grantee taking subject to the loan d. Grantor selling subject to the loan - CORRECT ANSWER Grantor selling subject to the loan" "C is purchasing a home by way of a VA loan. The closing statement reveals a payment of $1,200 in discount points. How would this payment appear on the closing statement? a. A reduction in the proceeds due seller b. An addition of the principal due from buyer c. A reduction in the buyer's down payment d. An addition to the proceeds due seller - CORRECT ANSWER An addition of the principal due from buyer" "he Federal National Mortgage Association can do all of the following EXCEPT: a. purchase conventional loans. b. self mortgages to institutions. c. buy FHA-V A loans. d. originate federal loans. - CORRECT ANSWER originate federal loans." "The clause that defines or limits the quantity of the estate being conveyed is the: a. partition clause. b. revocation clause. c. habendum clause. d. reversion clause. - CORRECT ANSWER habendum clause." "Which of the following parties is in the weakest position against a claim of title by a stranger? a. A non occupant holder of a warranty deed b. A non occupant holder of an unrecorded quit-claim deed c. One who holds an unrecorded deed d. One who holds a recorded quitclaim deed to the property. - CORRECT ANSWER A non occupant holder of an unrecorded quit-claim deed" "An easement may be canceled by all of the following except: a. the dominant estate b. the servient estate c. merging both estates into one d. prescription - CORRECT ANSWER prescription" "Deed restrictions are examples of: a. Zoning ordinances b. Police power c. Private control of land d. Leaseholds - CORRECT ANSWER Private control of land" "In any valid lease, the lessor by law gives an implied covenant of: a. quiet enjoyment b. satisfaction c. reconveyance d. undue influence - CORRECT ANSWER quiet enjoyment" "If a written rental agreement is used agreement need not be signed to be enforceable agreement must be signed by the party to be charged Uniform Residential Landlord and Tenant Act requires only the landlord sign the agreement. Uniform Residential Landlord and Tenant Act requires only the tenant sign the agreement. - CORRECT ANSWER the agreement must be signed by the party to be charged" "A valid enforceable sales agreement must a. contain the grantor and grantee' s signatures. b. be written and delivered. c. be accompanied by an earnest money deposit. d. be written and mailed. - CORRECT ANSWER be written and delivered." "a. contract would become void. b. contract would be voidable by the seller only. c. contract would be voidable by the buyer. d. buyer must be allowed additional time to meet the condition. - CORRECT ANSWER contract would be voidable by the buyer." "When a seller wishes to convey title by means of a statutory deed form, the salesperson a. can advise the seller which deed form to use. b. can advise the buyer which tenancy to use. c. can help the seller fill in the blanks. d. can fill it out for the buyer. - CORRECT ANSWER can help the seller fill in the blanks." "A mortgage instrument may include a clause that prevents the assumption of the mortgage by a new purchaser without the lender's consent. What is this clause called? a. Alienation clause b. Power of sale clause c. Defeasance clause d. Escalation clause - CORRECT ANSWER Alienation clause" "Under a deed of trust on real property, the trustee is a. the owner of the property covered by the deed of trust. b. empowered to foreclose upon default after advertising the sale. c. the equitable owner of the property. d. the holder of the grant deed. - CORRECT ANSWER the owner of the property covered by the deed of trust." "To be a valid lien against a parcel of real estate a deed of trust must be signed by: i. Trustee ii. Trustor iii. Beneficiary a. Only i. b. Only ii. i. and ii. ii. and iii. - CORRECT ANSWER Only ii." "A deed of trust loan must include a power of sale clause to be foreclosed by a. Advertising the sale b. Law suit c. Judicial procedure d. the FHA - CORRECT ANSWER Advertising the sale" "Money for tax and insurance payments that accompanies principal and interest could be placed in any of the following accounts EXCEPT a. suspense funds account b. trust account c. reserve account d. escrow account - CORRECT ANSWER suspense funds account" "What type of lease requires the lessee to pay taxes, insurance, and repairs? a. Net lease b. Percentage lease c. Variable lease d. Gross lease - CORRECT ANSWER Net lease" "Which of the following is a method of foreclosure that does not require civil action? a. Judicial foreclosure b. Strict foreclosure c. Sheriff' s foreclosure d. Nonjudicial foreclosure - CORRECT ANSWER Nonjudicial foreclosure" "Prorated items that represent prepaid expenses of the seller should be shown on the settlement statement as a a. credit to the seller and debit to the buyer. b. debit to the seller and credit to the buyer. c. credit to the buyer. d. debit to the seller. - CORRECT ANSWER credit to the seller and debit to the buyer." "A mortgager can direct financing from all of the following EXCEPT a. mortgage banking companies. b. savings and loan associations. c. commercial banks. d. Ginnie Mae. - CORRECT ANSWER Ginnie Mae." "After the statue of limitations has run out, a contract that has been breached is which of the following? a. Unenforceable b. Rescinded c. Terminated d. Discharged - CORRECT ANSWER Unenforceable" "In the event of the parties to a contract wish to delete a provision in the printed agreement form, they should a. execute a supplement to the purchase agreement . b. cross out the provisions to be deleted. c. have there signatures notarized. d. arrive at an oral agreement to make the changes. - CORRECT ANSWER execute a supplement to the purchase agreement ." "A licensed real estate broker a. becomes an agent the vendee upon obtaining a valid listing. b. can disclose any truthful information received from the principal. c. becomes an agent of the vendor when a buyer is found. d. must disclose all material facts to the principal. - CORRECT ANSWER must disclose all material facts to the principal." "How many acres are in the S1/2 of the NW 1/4 of the SE 1/4 of a section? a. 10 b. 20 c. 40 d. 120 - CORRECT ANSWER 20" "Sandy and Gary, who are not married, jointly own a parcel of real estate. Each owns an undivided interest. Sandy' s share is two-thirds and Gary' s share is one-third. This form of ownership is a. tenancy in common. b. joint tenancy. c. tenancy by the entirety. d. community property ownership. - CORRECT ANSWER tenancy in common." "Sam leases a property to Henry under an oral one-year lease. If Henry defaults, Sam may a. not bring court action because of parol evidence rule. b. not bring court action because of the statue of frauds. c. bring a court action because of one-year leases need not be in writing to be enforced. d. bring a court action because the statue of limitations does not apply to oral leases. - CORRECT ANSWER bring a court action because of one-year leases need not be in writing to be enforced." "Acceleration is a term associated with which of the following? a. Listings b. Sales contracts c. Mortgages d. Leases - CORRECT ANSWER Mortgages" "The federal Fair Housing Act 1968 makes it illegal to discriminate because of a. age. b. marital status. c. public assistance. d. religion. - CORRECT ANSWER religion" "Broker Allen enters into a listing agreement with seller Bennett wherein Bennett will receive $12,000 from the sale of a vacant lot and Allen will receive any sale proceeds over and above that amount. The type of listing agreement into which Allen and Bennett entered is a. called a gross listing. b. a highly popular method of listing property in most states. c. called an exclusive agency d. called a net listing - CORRECT ANSWER called a net listing" "If the annual net income form certain commercial property is $22,000 and the capitalization rate is 8 percent, what is the value of the property using the income approach? a. $275,000 b. $176,000 c. $200,000 d. $183,000 - CORRECT ANSWER $275,000" "A real estate sales contract becomes valid or in effect when it has been signed by which of the following? a. Buyer b. Buyer and seller c. Seller d. Broker and seller - CORRECT ANSWER Buyer" "All of the following situations are in violation of the federal Fair Housing Act of 1968 EXCEPT the a. refusal of property manager Joe Kelley to rent an apartment to a Catholic couple who are otherwise qualified. b. general policy of the Locust Loan Company, which avoids granting home improvement loans to individuals "changing" neighborhoods. c. intentional neglect of a broker Harvey Hall to show a black family any property listings of homes in all-white neighborhoods. d. insistence of Agnes Taylor, a widow, on renting her spare bedroom only to another women. - CORRECT ANSWER insistence of Agnes Taylor, a widow, on renting her spare bedroom only to another women." "A licensed salesperson is authorized by law to a. sign a closing statement b. collect a commission directly from a principal for performing assigned duties. c. advertise listed property under his or her own name. d. act under the supervision of a real estate broker. - CORRECT ANSWER ..." "If either party to a real estate sales contract defaults, usually the other party can a. bring an action of adverse possession. b. declare the sale canceled and has no legal recourse. c. serve notice of redemption. d. sue for specific performance. - CORRECT ANSWER sue for specific performance." "In estimating the value of commercial property, what is the appraiser's most important consideration? a. Reproduction cost b. Net income c. Gross rent multiplier d. Gross income - CORRECT ANSWER Net income" "All the following are example of a specific lien EXCEPT a. real estate taxes. b. an IRS lien. c. a mortgage. d. a mechanic' s lien. - CORRECT ANSWER an IRS lien." "Which of the following types of ownership are characterized by the right of survivorship? a. Joint tenancy and tenancy in common b. Joint tenancy and tenancy by the entireties c. Joint tenancy and severalty d. Joint tenancy and condominium tenancy - CORRECT ANSWER Joint tenancy and tenancy by the entireties" "The type of ownership that blends severalty and tenancy in common ownership is a a. periodic tenancy. b. condominium. c. cooperative. d. life estate. - CORRECT ANSWER condominium" "If K grants a life estate to L based on the life of M, and L dies before M, what is the status of the life estate? a. It belongs to K in fee simple absolute ownership. b. It belongs to K remainderman. c. It belongs to M and the heirs of M. d. It belongs to L ' s heirs until the death of M. - CORRECT ANSWER It belongs to L ' s heirs until the death of M." "A subdivision has a deed restriction that does not allow tree houses. An architect moves into the subdivision and builds a tree house in the back yard. How many neighbors will it take to enforce the deed restriction and what action should be taken? a. 75 percent of the neighbors must sign a petition that will be given to the local zoning board for enforcement. b. Only one neighbor needs to take action through the local zoning board. c. Only one neighbor needs to take action through the court system. d. 75 percent of the neighbors must take action through private court action. - CORRECT ANSWER Only one neighbor needs to take action through the court system." "A developer discovers that a proposed swimming pool in a condominium community meets all local zoning requirements except for the side yard line on one side of the clubhouse. What should the developer do? a. Because its only on one side of the clubhouse, no action is necessary on the part of the developer. b. The developer should file for a variance with the local zoning board. c. The developer should file for a nonconforming use with the local zoning board. d. The developer should continue with the construction and later file for an adverse possession claim to the property. - CORRECT ANSWER The developer should file for a variance with the local zoning board." "Which of the following situations would terminate a listing agreement without legal liability? a. Death of the agent b. Destruction of the broker' s office c. Death of the seller d. Bankruptcy of the agent - CORRECT ANSWER Death of the seller" "Which of the following statements in NOT true? a. A land contract is also known as an installment contract. b. If a time for performance is not stated in a contract, the duties are expected to be performed within a reasonable time. c. An equitable title is transferred when the deed is signed by the grantor at the closing table. d. Liquidated damages are agreed to in advance by the buyer and seller to compensate one party if the other does not live up to the contract. - CORRECT ANSWER An equitable title is transferred when the deed is signed by the grantor at the closing table." "Because the cost of clean-up and removal of hazardous waste can be greater than the value of the property, an agent is expected to have a. technical expertise in possible hazardous substances. b. technical expertise in the area of asbestos, which is present in so many buildings. c. taken a class on how to identify asbestos,because it is present in so many buildings. d. a basic knowledge of hazardous substances and be aware of environmental issues in a real estate transaction - CORRECT ANSWER a basic knowledge of hazardous substances and be aware of environmental issues in a real estate transaction" "The primary objectives of a property manager are to a. generate the highest net operating income of the property while maintaining preserving the owner's investment. b. secure tenants by offering the lowest possible rents that the budget allows. c. negotiate contracts with service providers that give the manager the most advantageous kickbacks. d. cut expenses in any way necessary to generate a profit for the owner. - CORRECT ANSWER generate the highest net operating income of the property while maintaining preserving the owner's investment." "A lease with a definite beginning, a definite ending, and no notice is required to terminate the lease is a (n) a. estate for years. b. periodic tenancy. c. estate at will d. estate at sufferance - CORRECT ANSWER estate at will" "A tenant entered into a three-year lease that was an estate for years agreement. On the termination of the lease agreement, the tenant remained in possession of the property. Which of the following is true? a. I the landlord accepted payment for another month, the original lease automatically renewed for another term. b. The landlord could evict the tenant or treat the holdover tenant as a periodic tenancy. c. The tenant had the right to remain in the property because the landlord did not give proper notice. d. The tenant had the right to remain in property because the landlord does not have it rented to anyone anyway. - CORRECT ANSWER The landlord could evict the tenant or treat the holdover tenant as a periodic tenancy." "Which of the following is NOT a requirement for a valid lease? a. Offer and acceptance b. Description of the leased premises c. Capacity to contract d. An option agreement - CORRECT ANSWER An option agreement" "A property leases for $700 per month, plus 4 percent of all gross sales of more than $350,000. How much were the gross sales if the rent paid for the year was $14,975? a. $414,375 b. $164,375 c. $356,375 d. $514,375 - CORRECT ANSWER $514,375" "A homeowner purchased a first principal place of residence for $69,000. In the next five years, she made $10,000 worth of improvements. The property sold for $109,000 and 6 percent commission was paid. Which of the following is true regarding the capital gains? a. The adjusted basis is $102,460. b. The capital gain is $23,460. c. The capital gain is $33,460. d. The adjusted basis is $89,000. - CORRECT ANSWER The capital gain is $23,460." "Which of the following is true regarding the refinancing of property? a. A title search is conducted, the property is appraised, and the borrower must requalify for the loan. b. The general rule of thumb is that a property should be refinanced when there is a 1 percent interest differential., c. If the borrowers have divorced, only one party's income will still be considered because only one name is now on the deed. d. If the borrowers have divorced, both parties income will be considered because both names are on the deed. - CORRECT ANSWER A title search is conducted, the property is appraised, and the borrower must requalify for the loan." "What is the priority of the following liens? a. IRS liens, then property taxes b. IRS liens, then special assessments c. First mortgage, property taxes d. Property taxes, then first mortgage - CORRECT ANSWER Property taxes, then first mortgage" "A borrower purchased mortgagee's title insurance on a property. After the final payment was made on the mortgage, a title defect was found. The borrower may have recourse through the a. previous owner if a general warranty deed was transferred at the closing. b. previous owner if a quitclaim deed was transferred at the closing. c. title insurance company because a title insurance policy was secured when the property was purchased. d. title insurance company even though a mortgagee's title insurance was secured when the property was purchased. - CORRECT ANSWER previous owner if a general warranty deed was transferred at the closing." "What is the MAJOR DIFFERENCE between constructive notice and actual notice? a. Constructive notice is a direct knowledge, while actual notice is legal notice. b. Constructive notice is documented at an attorney's office, while actual notice is documented through the newspapers. c. Constructive notice provides protection because it is recorded by an attorney, while actual notice can be recorded by an agent. d. Constructive notice is notice that the law presumes we have, while actual notice is what a party actually knows. - CORRECT ANSWER Constructive notice is notice that the law presumes we have, while actual notice is what a party actually knows." "Which of the following is NOT true regarding RESPA? a. RESP A requirements apply when a residential purchase is financed by a federally related mortgage loan. b. RESPA was enacted to eliminate kickbacks and other referral fees that increase the cost of settlement. c. RESPA requires that a good-faith estimate of settlement costs be provided to the buyer within two days of loan application. d. The settlement statement must be made available for inspection by the borrower at or before settlement. - CORRECT ANSWER RESPA requires that a good-faith estimate of settlement costs be provided to the buyer within two days of loan application." "Robert and Dorothy, no longer needing their large house, decide to sell the house and move into a cooperative apartment building. Under the cooperative form of ownership, Robert and Dorothy will a. become stockholders in a corporation. b. never lose their apartment if they pay their share of the cooperatives's taxes. c. take out a new mortgage on their unit. d. receive a 20-year lease for their unit. - CORRECT ANSWER become stockholders in a corporation." "Which of the following is NOT an example of a legal description? a. Geodetic survey b. Lot and block c. Metes and bounds d. Torrens system - CORRECT ANSWER Torrens system" "Carrie is buying a single-family home for investment purposes. The appraiser will MOST LIKELY use which method to appraise the property? a. Income b. GIM c. Cost d. Market data - CORRECT ANSWER Income" "In appraising a residential property, the appraiser would make a a. positive adjustment to the subject property if the subject property had an amenity the comparable did not. b. negative adjustment to the subject property if the subject property had an amenity the comparable did not. c. positive adjustment to the comparable property if the subject property had an amenity the comparable did not. d. negative adjustment to the comparable property if the comparable property did not have an amenity the subject property had. - CORRECT ANSWER positive adjustment to the subject property if the subject property had an amenity the comparable did not." "Which of the following terms is associated with real estate property taxes? a. Caveat emptor b. Caveat venditor c. Annuit coeptis d. Ad valorem - CORRECT ANSWER Ad valorem" "A lender charged $4,000 in discount points on a $100,000 loan. How many discount points were charged? a. 1 b. 10 c. 4 d. 40 - CORRECT ANSWER 4" "A borrower negotiated a 90 percent loan and the lender is charging two points. If his offer of $190,000 is accepted, what is the minimum cash he will need to close? a. $22,420 b. $19,000 c. $25,239 d. $22,240 - CORRECT ANSWER $22,420" "Buyer and seller agree to the purchase of a house for $200,000 in which the buyer will make a $30,000 down payment and the seller will take back a ten-year purchase money mortgage for the balance. There is nothing in the contract to indicate that time is of the essence. The sales contract will be valid for which of the following? a. Closing date b. Interest rate c. Signatures on the contract d. Term of loan - CORRECT ANSWER Interest rate" "A binder given by a buyer in a real estate transaction: a. must be monetary. b. may be withdrawn by the buyer anytime before the seller signs his or her acceptance. c. draws interest in favor of the broker. d. must exceed 5 percent of sales price. - CORRECT ANSWER may be withdrawn by the buyer anytime before the seller signs his or her acceptance." "Which of the following is true under contract of sale in which the date of occupancy is later than the settlement date? a. The buyer does not acquire legal title upon settlement. b. The contract should provide whether the seller is to pay any rent. c. The buyer cannot obtain hazard insurance. d. The seller is the legal owner until occupancy is ended. - CORRECT ANSWER The contract should provide whether the seller is to pay any rent." "If a lessee defaults on a lease and abandons the property in good condition,for which of the following could the lessee be held liable? a. Balance of the rent plus forfeiture of the security deposit b. Balance of the rent plus the cost to find a new tenant. c. Decrease in the market value of the property d. Balances of the rent - CORRECT ANSWER Balance of the rent plus the cost to find a new tenant." "If the title will pass a third party upon the death of the life tenant, what was the third party's interest in the property? a. Remainder interest b. Reversionary interest c. Conditional interest d. Redemption interest - CORRECT ANSWER Remainder interest" "Under a percentage lease, the lessee pays $400 per month plus 2.75 percent of gross sales. Last month's gross sales were $198,210. How much is the rent? a. $5,450.78 b. $5,850.78 c. $5,540.78 d. $5,580.78 - CORRECT ANSWER $5,850.78" "Which one of the following is true when the seller takes back a mortgage from the buyer as part payment for sale? a. The seller is entitled to possession of the property until the debt is paid. b. The seller retains legal title. c. No second mortgage may be placed on the property by the buyer. d. This is a purchase-money mortgage. - CORRECT ANSWER This is a purchase-money mortgage." "If the foreclosure sale proceeds are less than the outstanding debt and foreclosure expenses, which of the following remedies is available? a. There is no remedy. b. The mortgage must absorb the loss, as the mortgagor is liable only for foreclosure expenses. c. Owner has the statutory right of redemption. d. Mortgagee may obtain a deficiency judgment against the mortgagor. - CORRECT ANSWER Mortgagee may obtain a deficiency judgment against the mortgagor." "E and D agreed to buy an apartment on the following terms: first mortgage loan on a 90 percent loan-to value- ratio: seller to accept a second mortgage for one-half the remaining balance, the remainder to be paid in cash as down payment. If the down payment was $15,000, what was the amount of the first mortgage loan? a. $27,000 b. $30,000 c. $270,000 d. 300,000 - CORRECT ANSWER $270,000" "Pat bought a home for $75,000. He put up $5,000 earnest money and secured an 80% loan. The bank charged four points and a 2.5% loan fee. How much cash will he need to bring to closing? a. $13,000 b. $13,900 c. $13,975 d. $18,000 - CORRECT ANSWER $13,900" "A buyer is assuming a V A loan and paying an additional $5,000 cash for the property. The buyer should sign: a. note and mortgage b. warranty deed c. assumption agreement d. landcontract - CORRECT ANSWER assumption agreement" "All of the following are usually paid by the buyer at close of a residential sale EXCEPT: a. title opinion b. appraisal fee c. commission d. title insurance - CORRECT ANSWER commission" "The property tax year runs from January 1 to December 31. The taxes on a certain house are $1,440 per year, all of which have been paid. If the house sells, not in a leap year, and the closing dates ie June 12, the: a. buyer owes the seller $796.93 b. buyer owes the seller $643.07 c. seller owes the buyer $796.93 d. seller owes the buyer $643.07 - CORRECT ANSWER buyer owes the seller $796.93" "The principal amount of the seller's current mortgage payoff is a: a. credit to the seller b. credit to the buyer c. debit to the seller d. debit to the buyer - CORRECT ANSWER debit to the seller" "When an appraiser uses the market comparison method, which of the following conditions may disqualify a sale as a fair market value transaction? a. Sale to family member b. Seller who was not in hurry to sell c. FHA financed transaction d. Neighbor' s house sold for higher amount - CORRECT ANSWER Sale to family member" "Jake sold a property to Alma. He gave her a warranty deed which she accepted but never recorded. What is the status of the deed after Jake dies five years later? a. valid b. void c. voidable d. unenforceable - CORRECT ANSWER valid" "If a contract of sale is subject to the buyer's ability to sell their current home, and after a reasonable time on the market is unable to do so, the a. contract would be voidable by the buyer b. contract would be voidable by the seller c. contract would be void d. contract would automatically be extended - CORRECT ANSWER contract would be voidable by the buyer" "The phrase "jointly and severally liable" in a lease applies when there are two or more: a. makers b. obligees c. lessees d. holders - CORRECT ANSWER makers" "In some states a mortgage is considered to be a transfer of title to real property. In other states a mortgage is interpreted as: a. a bona fide purchase b. a lien on the property c. naked title d. equitable title - CORRECT ANSWER a lien on the property" "Satisfaction of a deed of trust requires that the trustee execute and deliver a(n): a. assignment of mortgage b. subordination of mortgage c. deed of reconveyance d. satisfaction of mortgage - CORRECT ANSWER deed of reconveyance" "When the servient estate is sold, easements which are appurtenant to an adjoining parcel: a. will automatically be terminated b. revert to the original grantee c. become public domain d. run with the land - CORRECT ANSWER run with the land" "A deed that was not acknowledged or recorded, as between grantor and grantee it would be: a. invalid because these omissions b. voidable by the grantor c. null and void d. valid despite these omissions - CORRECT ANSWER valid despite these omissions" "Martha owns a life estate in Blackacre with a reversion to the grantor, her interest cannot: a. be sold b. be mortgaged c. be devised d. be leased - CORRECT ANSWER be devised" "Restrictions in a deed: a. can be removed by the grantor. b. must be more lenient than zoning codes c. must be more restrictive than the current zoning codes d. are irrevocable - CORRECT ANSWER can be removed by the grantor." "As to the dominant tenement an easement is: a. an encumbrance. b. an appurtenance. c. a license. d. an encroachment. - CORRECT ANSWER an appurtenance." "A survey reveals that Albert, through error, has recently built a patio one foot over on Alice's land. This would be an example of: a. a party wall. b. an encroachment. c. an appurtenance. d. adverse possession. - CORRECT ANSWER an encroachment." "Riparian rights are: a. held by an owner living in a condominium. b. held by an owner living on a watercourse. c. a corporation' s ownership interest d. the ownership rights of a cooperative - CORRECT ANSWER held by an owner living on a watercourse." "The word "fee" when used in connection with real estate means: a. the broker' s compensation. b. an estate of inheritance. c. the charge made for searching title. d. leased land. - CORRECT ANSWER an estate of inheritance." "Real property reverts to the government when a property holder dies intestate and no heirs can be found, this is called a/an: a. reconveyance. b. reversion. c. escheat. d. succession. - CORRECT ANSWER escheat" "What document is used to convey personal property to a new owner? a. Bill of sale b. Chattel mortgage c. Bargain and sale deed d. Package mortgage - CORRECT ANSWER Bill of sale" "Of the following, all are true about apartment ownership EXCEPT: a. In a condominium, each owner is responsible for his or her own mortgage payments. b. In typical cooperative association, if one or more members fail to pay their share of the mortgage, the other owners must make payments for the defaulting members, or risk foreclosure o the entire property. c. In condominium, each owner holds stock of the corporation which owns the real estate and occupies the real estate under a proprietary lease. d. In a condominium, each owner receives an apartment deed. - CORRECT ANSWER In condominium, each owner holds stock of the corporation which owns the real estate and occupies the real estate under a proprietary lease." "When a condominium owner defaults on his real property taxes, what can the government do? a. Foreclosure for taxes against the apartment. b. Seek to recover from the condominium association c. Exercise its right of eminent domain d. Place a lien on the common elements - CORRECT ANSWER Foreclosure for taxes against the apartment." "It is lawful under the Federal Fair Housing Act to: a. approve a loan to a person who has stated the intention to rent the property only to members of a minority group. b. refuse to rent to an applicant who is disabled who has a prior violent criminal conviction. c. require the applicant to sign a form that lists religion, sex and marital status. d. deny housing to a pregnant women. - CORRECT ANSWER refuse to rent to an applicant who is disabled who has a prior violent criminal conviction." "The federal Fair Housing Act permits: savings and loan association on the grounds the loan applicant intends to rent part of the subject property to members of a certain minority group. a. Charging a higher interest rate on a loan by a b. Advertising property for sale only in publications primarily aimed at a particular ethnic group and using models of only that same ethnic group. c. Refusing a loan on a house based on the religion of the applicant. d. Denying housing based on the bad credit of the applicant. - CORRECT ANSWER Denying housing based on the bad credit of the applicant." "Sara decides to use the services of SpeedySale Realty to list her home for sale below fair market value after an agent for SpeedySalel Realty told her that religious minorities were moving into the neighborhood. SpeedySale Realty's discriminating actions can be BEST described as: a. redlining. b. blockbusting. c. steering. d. legal. - CORRECT ANSWER blockbusting" "A salesperson gets 60 percent of the commission on property he lists and sells for the firm. Which of the following transactions will earn the most money for the salesperson? a. $50,500 at 7 percent b. $55,500 at 6.5 percent c. $60,750 at 6 percent d. $ 65,000 at 5.5 percent - CORRECT ANSWER $60,750 at 6 percent" "Working for Time To Invest in Real Estate Agency, the listing salesperson gets 20 percent of the total commission on a sale. The selling salesperson gets 45 percent of the remainder. How much would Sam receive if he were both the listing and selling salesperson on a $135,500 sale at 6 percent? a. $2,926.80 b. $3,880.80 c. $4,552.8 d. $5,284,50 - CORRECT ANSWER $4,552.80" "An owner requests a broker to list a property for sale at $70,000 and offers to let the agent retain any amount above $65,000. On inspection, the broker believes the property is worth $80,000. The broker should? a. get a net listing for the property at $70,000. b. buy the property herself for $70,000. c. refuse to take the listing. d. inform the seller that the property is worth $80,000 - CORRECT ANSWER inform the seller that the property is worth $80,000" "A fiduciary relationship exists between a principal and all of the following EXCEPT a (n) a. trustee. b. agent. c. mortgagee. d. receiver. - CORRECT ANSWER receiver" "All of the following are true when money is deposited in a client trust account, part of which will be used to pay the broker's commission, EXCEPT: a. the broker can withdraw his or her share of the money before the real estate transaction is consummated or terminated. b. accurate records must be kept on the account. c. the funds will remain in a non-interest bearing account unless agreed by the parties. d. the money must not be commingled with the broker's personal funds. - CORRECT ANSWER the broker can withdraw his or her share of the money before the real estate transaction is consummated or terminated." "An agent who has the right to bind a principal to a contract a(n) a. general agent. b. broker with a listing. c. special agent. d. attorney at law. - CORRECT ANSWER broker with a listing." "The relationship between a real estate agent and a client is MOST similar to which of the following? a. Optionee and optionor b. Vendee and vendor c. Trustee and beneficiary d. Mortgagee and mortgagor - CORRECT ANSWER Trustee and beneficiary" "A property manager's duties typically include all of the following EXCEPT: a. collecting rents. b. pay expenses on behalf of owner. c. marketing space. d. advising the client on tax matters. - CORRECT ANSWER advising the client on tax matters." "An Escrow agent's duties in closing a real estate transaction may include all of the following EXCEPT: a. determining that outstanding and unpaid liens will be satisfied. b. see that the purchase price is paid. c. handling the signing of documents. d. prepare the legal documents (other than the deed). - CORRECT ANSWER determining that outstanding and unpaid liens will be satisfied." "An unrecorded deed made and delivered is: a. valid between the parties. b. valid as to subsequent recorded interests. c. invalid as to subsequent donees of the property. d. voidable by either party. - CORRECT ANSWER valid between the parties." "The main function of the recording system is? a. Insures title against losses due to third-party claims. b. Cures defects in title c. To gives constructive notice of documents d. Handling the closing of real estate sale - CORRECT ANSWER To gives constructive notice of documents" "Which of the following is considered to be physical deterioration: a. obsolescence. b. wear and tear. c. reversion. d. recapture. - CORRECT ANSWER wear and tear." "When reproduction cost is greater than the appraised value, which of the following MOST likely has occurred? a. Accrued depreciation b. Excessive appraisal c. Economic obsolescence d. Capitalization - CORRECT ANSWER Accrued depreciation" "Which of the following is true of real estate appraisers? a. They need a master' s degree. b. They usually base their fees on a percentage of appraised value. c. They must have a professional designation such as MAI, SREA. d. They must hold a state appraiser's licence or certification. - CORRECT ANSWER They must hold a state appraiser's licence or certification." "An agent listed a property for $89,000 and five days later received an offer of $89,000. Which of the following is true? a. The seller must accept the offer because it is for the listed price. b. The buyer cannot withdraw the offer because it is for the listed price. c. The seller does not have to accept the offer or pay the broker's commission unless she or he accepts the offer. d. The buyer may withdraw the offer prior to its acceptance. - CORRECT ANSWER The buyer may withdraw the offer prior to its acceptance." “The current market interest rate is 17 percent. Mr. and Mrs. Homeowner want to transfer their property to their daughter. The loan balance is $75,000. The property can be transferred if the loan does NOT contain a(n) -alienation clause. -accelerating clause. -defeasance clause. -non disturbance clause. - CORRECT ANSWER alienation clause" "An offer has been accepted on a property. After the title search, who gives an opinion of title? a. An attorney b. The seller c. The buyer d. The broker - CORRECT ANSWER an attorney" "Mr. and Mrs.. Buyer just purchased their first house, which sits on five acres. They intend to keep goats on the property. Which of the following would allow or disallow them to keep goats? a. Federal ordinances b. State ordinances c. Zoning d. Neighbors - CORRECT ANSWER zoning" "A buyer made an offer of $250,000 on a property with no contingencies and the offer was accepted. The buyer planned to build a shopping center, but never mentioned it to the agent. Just before the closing, the buyer discovered that he could not build the shopping center. What is the status of the sales concert? a. Valid b. Void c. Voidable d. Unenforceable - CORRECT ANSWER valid" "Which of the following is an example of an emblement? a. A stand of walnut trees b. A field of corn c. An apple orchard d. A vineyard - CORRECT ANSWER a field of corn" "A buyer's agent is usually considered to be in what relationship to the seller? a. Client b. Customer c. Agency d. Subagency - CORRECT ANSWER customer" "Which of the following is a physical characteristic of real estate? a. Mobility b. Scarcity c. Uniqueness d. Transferability - CORRECT ANSWER Uniqueness" "Which of the following normally purchases mortgages in the secondary mortgage market? a. Mortgage banking companies, savings, and loans, commercial banks, and mutual savings banks. b. Fannie Mae, Ginnie Mae, and Freddie Mac c. Federal Housing Administration d. Department of V eterans Affairs - CORRECT ANSWER Fannie Mae, Ginnie Mae, and Freddie Mac" "The most important test in determining whether something is a fixture is a. The weight and /or size b. its amount of utilization c. its method of attachment d. the intention of the party who attached it - CORRECT ANSWER the intention of the party who attached it" "A section of real estate a. contains 460 acres. b. is 1 mile square. c. contains 43,560 acres. d. is numbered to indicate either north or south - CORRECT ANSWER is 1 mile square" "Which of the following is NOT necessary in a listing contract? a. The signature of all parties on the deed b. The signature of the sellers c. The signature of the broker d. The signature of the buyer - CORRECT ANSWER The signature of the buyer" "Andrew leases the 12 apartments in the Overton Arms for a total monthly rental of $3,000. If this figure represents an 8 percent annual return on Andrew's investment, what was the original cost of the property? a. $450,000 b. $360,000 c. $45,000 d. $36,000 - CORRECT ANSWER $450,000" "By paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? a. Acceleration b. Redemption c. Reversion d. Recovery - CORRECT ANSWER Redemption" "Helen grants a life estate to her grandson and stipulates that, upon death, the title will pass to her son-in-law. What is the second estate? a. Estate in reversion b. Estate in remainder c. Estate for years d. Estate in recapture - CORRECT ANSWER Estate in remainder" "The borrower's offer of $190,000 was accepted. She has a 10 percent down payment and would like to avoid paying for private mortgage insurance. Is there a loan that would allow her to accomplish her goal? a. Yes, she can borrow $19,000 from a private source, tell the lender she has a 20 percent down payment instead of a 10 percent down payment, and avoid private mortgage insurance. b. Yes, if the seller will negotiate a purchase money mortgage for $19,000 and agree to be in a second lien position on the property, she can avoid private mortgage insurance. c. No, because all borrowers must pay private mortgage insurance when negotiating any type of loan. d. No, because private mortgage insurance is always paid when a borrower has less than a 20 percent down payment. - CORRECT ANSWER No, because private mortgage insurance is always paid when a borrower has less than a 20 percent down payment." "A couple wants to list a home they have lived in for 38 years because they have decided to move to Florida before the winter storms arrive. The listing agent is aware that zoning may change in the area, which would greatly increase the value of their property. The agent should say? a. say nothing incase the zoning does not change b. inform the sellers of all the facts she has regarding the zoning change, and let them make the decision about listing the property c. List the property because she has a buyer that has already shown interest, and if it sells, then the sellers will be in Florida before the winter storms d. list the property and say nothing because if the zoning does change, the listing contract will be void anyway - CORRECT ANSWER inform the sellers of all the facts she has regarding the zoning change, and let them make the decision about listing the property" "Which of the following is NOT a depreciation factor when assessing the value of a property? a. A house with four bedrooms located on the second floor and the bath located on the first floor b. A hog farm located one-half mile down the road from a $250,000 home c. A house located next to a city park d. A house, which cost $50,000 to build 40 years ago, with major cracks in the foundation - CORRECT ANSWER A house located next to a city park" "What is a tenancy at will? a. A tenancy created by the consent of the landlord b. A tenancy that expires a specific date c. A tenancy created by the death of the owner d. A tenancy created by the testator - CORRECT ANSWER A tenancy created by the consent of the landlord" "A homeowner who always maintains his has just discovered that he has termite infestation. This is a example of a. incurable physical obsolescence. b. possible curable physical obsolescence. c. possible curable economic obsolescence. d. incurable internal obsolescence - CORRECT ANSWER possible curable physical obsolescence." "When appraising property, the appraiser considers which of the following? a. The original price paid for the property. if purchased within three years. b. The reconciliation of the values determined by the different methods of appraising c. The average cost of the comparable properties, after adjustments are made d. The cost for updating the subject property other than the cost of replacing the carpet. - CORRECT ANSWER The reconciliation of the values determined by the different methods of appraising" "On Monday, Victor receives an offer from Leona for $12,000 on a vacant lot he has for sale. On Tuesday, Victor rejects the offer, counteroffers at $13,000, and gives Leona three days to accept. On Friday, Leona rejects the counteroffer and Victor than accepts Leona's original offer. Under these conditions there is a. a valid agreement, because Leona accepted Victor's offer exactly as it was made. b. not a valid agreement, because Leona's offer was rejected, and once rejected, it cannot later be accepted. c. a valid agreement, because Leona accepted before Victor advised her that the offer was withdrawn. d. not a valid agreement, because Victor's offer was not accepted within 72 hours. - CORRECT ANSWER not a valid agreement, because Leona's offer was rejected, and once rejected, it cannot later be accepted" "Due to economic growth in an area, a house designed by a famous architect is now in a flight pattern from the nearby airport. This is a example of a. external obsolescence, and the owners could receive compensation b. external obsolescence, and the owners will not under any circumstances receive any compensation. c. functional obsolescence because of the poor design. d. functional obsolescence because of the noise from the planes. - CORRECT ANSWER external obsolescence, and the owners could receive compensation" "In an appurtenant easement the property burdened by the easement is known as a a. prescriptive estate b. dominant