Rockwell Fundamental Final Exam #1
The term "meeting of the minds" is associated with
A. full performance of a contract
B. offer and acceptance
C. execution
D. tender of an offer - CORRECT ANSWER-B. offer and acceptance
Exaggeration about a property's positive characteristics would be considered:
A. fraud
B. misrepresentation
C. overstating
D. puffing - CORRECT ANSWER-D. puffing
The seller listed the property for $95,000. Assuming that their listing agreement is
typical, the broker would NOT be entitled to a commission if the seller:
A. rejected a $90,000 offer from a financially qualified buyer
B. accepted a $90,000 offer from a financially qualified buyer
C. accepted a $95,000 offer, but his title turned out to be unmarketable
D. rejected a $95,000 offer from a financially qualified buyer - CORRECT ANSWER-A.
rejected a $90,000 offer from a financially qualified buyer
A contract specifies that "time is of the essence." This means that:
A. the seller must fulfill her contractual duties by the date set forth in the contract, but
the buyer does not have to
B. the buyer must fulfill her contractual duties by the date set forth in the contract, but
the seller does not have to
C. the agent must fulfill his contractual duties by the date set forth in the contract, but
the buyer and seller do not have to
D. all contractual duties must be fulfilled on or before the date set forth in the contract -
CORRECT ANSWER-D. all contractual duties must be fulfilled on or before the date set
forth in the contract
Usary laws fix which of the following?
A. minimum interest rates
B. maximum interest rates
C. Length of time for repayment of loans
D. loan-to-value ratios - CORRECT ANSWER-B. maximum interest rates
For which of the following people would an adjustable-rate loan not be a good idea?
A. a person about to retire
B. A person planning to refinance after several years
C. A person who will live in the house only a short time
,D. A person whose income is expected to go up soon - CORRECT ANSWER-A. a
person about to retire
An appraiser needs to be state-certified to perform which of the following appraisals?
A. appraisal of a residence valued at $200,000
B. appraisal of a residence valued at $500,000
C. appraisal related to a loan that will be issued by a federally insured lender
D. appraisal related to an FHA loan - CORRECT ANSWER-D. appraisal related to an
FHA loan
Which of the following is most likely to be considered a fixture?
A. Draperies
B. Lamp
C. Plumbing
D. Washing Machine - CORRECT ANSWER-C. Plumbing
A life estate will last until:
A. economic conditions render it unfeasible
B. the death of the grantor
C. the death of the recipient
D. the recipient moves out - CORRECT ANSWER-C. the death of the recipient
The deed that states that there is a conveyance of interest, if any, is the:
A. grant deed
B. bargain and sale deed
C. quitclaim deed
D. special warranty deed - CORRECT ANSWER-C. quitclaim deed
A judgement lien:
A. applies only to personal property
B. applies only to real property
C. takes first lien position
D. when paid off, requires a satisfaction of judgement to be recorded to clear the record
- CORRECT ANSWER-D. when paid off, requires a satisfaction of judgement to be
recorded to clear the record
The police powers of the government include:
A. defeasance
B. foreclosure
C. lis pendens
D. building codes and zoning regulations - CORRECT ANSWER-D. building codes and
zoning regulations
On a settlement statement, an earnest money deposit that will be held by the brokerage
firm until closing is a:
,a. credit to the buyer
b. credit to the seller
c. debit (charge) to the buyer
d. debit (charge) to the seller - CORRECT ANSWER-A. Credit to the buyer
A licensee hears that a religious group will be opening a commune in a neighborhood.
He begins contacting neighbours and telling them about this, encouraging them to list
their properties with him before property values decline. This is:
a. blockbusting
b. redlining
c. steering
d. legal - CORRECT ANSWER-A. blockbusting
An investor is interested in purchasing a multi-family dwelling. He would most likely
want to look for a:
a. property that will offer a low rate of return
b. property where the rents are similar to comparable properties in the same area
c. property with a high vacancy rate
d. rent-controlled property - CORRECT ANSWER-b. property where the rents are
similar to comparable properties in the same area.
Zoning requirements state that a lot must be at least four times the size of the building
located on the lot. An architect draws up plans for a building that is 20,000 square feet.
At least how many aces does the lot need to be?
a. 1
b. 2
c. 3
d. 4 - CORRECT ANSWER-B. 2
(20,000 x 4 = 80,000 sq.ft)
In order to exceed the required 80,000, you need a 2 acre lot. (43,560 x 2 = 87,120
sq.ft)
Tests to distinguish a fixture from a personal property include all of the following,
EXCEPT:
a. method of attachment
b. cost of the item
c. intent of the annexor
d. adaptability - CORRECT ANSWER-B. cost of the item
A primary advantage of owning a property in severalty is:
a. flexibility
b. inheritability
c. joint occupancy
d. shared risk - CORRECT ANSWER-A. flexibility
, All of the following are requirements for a valid deed, EXCEPT:
a. acknowledgement
b. adequate legal description
c. signature of grantor
d. words of conveyance - CORRECT ANSWER-A. acknowledgement
A homeowner has been sharing with a friendly neighbour the use of a driveway that
crosses both of their properties. However, the neighbour is about to move out, and the
remaining homeowner would like to make sure that she can continue to use the
driveway even if the new neighbour is not amenable to that. The homeowner should
request a/an:
a. easement
b. encumbrance
c. license
d. profit - CORRECT ANSWER-A. easement
A local ordinance states that no sign can extend more than two feet above the roofline.
The Morgans want to put a sign on their roof, but the sign is six feet high. To install their
sign legally, the Morgans must apply for a:
a. sign clearance
b. nonconforming use permit
c. variance
d. residual - CORRECT ANSWER-C. variance
A property is listed for $275,000. The buyers offer $265,000 and insist that the gourmet
six-burner stove remain with the property. When the signed offer is presented to the
sellers, the sellers accept the price, but want to take the stove with them. They cross out
the item about the stove, sign the form, and return it to the buyers. Under these
circumstances:
a. there is now a valid contract that has been signed by all parties
b. the offer has been invalidated and the buyers will need to being looking for a new
property
c. the sellers can turn around and accept the original offer, if the buyers won't go along
with giving up the stove
d. the original offer is terminated, and the sellers have made a counteroffer - CORRECT
ANSWER-D. the original offer is terminated, and the sellers have made a counteroffer
A seller's agent, upon meeting with a prospective buyer, becomes concerned that the
buyer is unlikely to be financially qualified. The agent should:
a. perform a full examination of the buyers finances
b. refuse to accept that buyers offer
c. relay those concerns to the seller, who will decide
d. withdraw from the listing - CORRECT ANSWER-C. relay those concerns to the seller,
who will decide
The term "meeting of the minds" is associated with
A. full performance of a contract
B. offer and acceptance
C. execution
D. tender of an offer - CORRECT ANSWER-B. offer and acceptance
Exaggeration about a property's positive characteristics would be considered:
A. fraud
B. misrepresentation
C. overstating
D. puffing - CORRECT ANSWER-D. puffing
The seller listed the property for $95,000. Assuming that their listing agreement is
typical, the broker would NOT be entitled to a commission if the seller:
A. rejected a $90,000 offer from a financially qualified buyer
B. accepted a $90,000 offer from a financially qualified buyer
C. accepted a $95,000 offer, but his title turned out to be unmarketable
D. rejected a $95,000 offer from a financially qualified buyer - CORRECT ANSWER-A.
rejected a $90,000 offer from a financially qualified buyer
A contract specifies that "time is of the essence." This means that:
A. the seller must fulfill her contractual duties by the date set forth in the contract, but
the buyer does not have to
B. the buyer must fulfill her contractual duties by the date set forth in the contract, but
the seller does not have to
C. the agent must fulfill his contractual duties by the date set forth in the contract, but
the buyer and seller do not have to
D. all contractual duties must be fulfilled on or before the date set forth in the contract -
CORRECT ANSWER-D. all contractual duties must be fulfilled on or before the date set
forth in the contract
Usary laws fix which of the following?
A. minimum interest rates
B. maximum interest rates
C. Length of time for repayment of loans
D. loan-to-value ratios - CORRECT ANSWER-B. maximum interest rates
For which of the following people would an adjustable-rate loan not be a good idea?
A. a person about to retire
B. A person planning to refinance after several years
C. A person who will live in the house only a short time
,D. A person whose income is expected to go up soon - CORRECT ANSWER-A. a
person about to retire
An appraiser needs to be state-certified to perform which of the following appraisals?
A. appraisal of a residence valued at $200,000
B. appraisal of a residence valued at $500,000
C. appraisal related to a loan that will be issued by a federally insured lender
D. appraisal related to an FHA loan - CORRECT ANSWER-D. appraisal related to an
FHA loan
Which of the following is most likely to be considered a fixture?
A. Draperies
B. Lamp
C. Plumbing
D. Washing Machine - CORRECT ANSWER-C. Plumbing
A life estate will last until:
A. economic conditions render it unfeasible
B. the death of the grantor
C. the death of the recipient
D. the recipient moves out - CORRECT ANSWER-C. the death of the recipient
The deed that states that there is a conveyance of interest, if any, is the:
A. grant deed
B. bargain and sale deed
C. quitclaim deed
D. special warranty deed - CORRECT ANSWER-C. quitclaim deed
A judgement lien:
A. applies only to personal property
B. applies only to real property
C. takes first lien position
D. when paid off, requires a satisfaction of judgement to be recorded to clear the record
- CORRECT ANSWER-D. when paid off, requires a satisfaction of judgement to be
recorded to clear the record
The police powers of the government include:
A. defeasance
B. foreclosure
C. lis pendens
D. building codes and zoning regulations - CORRECT ANSWER-D. building codes and
zoning regulations
On a settlement statement, an earnest money deposit that will be held by the brokerage
firm until closing is a:
,a. credit to the buyer
b. credit to the seller
c. debit (charge) to the buyer
d. debit (charge) to the seller - CORRECT ANSWER-A. Credit to the buyer
A licensee hears that a religious group will be opening a commune in a neighborhood.
He begins contacting neighbours and telling them about this, encouraging them to list
their properties with him before property values decline. This is:
a. blockbusting
b. redlining
c. steering
d. legal - CORRECT ANSWER-A. blockbusting
An investor is interested in purchasing a multi-family dwelling. He would most likely
want to look for a:
a. property that will offer a low rate of return
b. property where the rents are similar to comparable properties in the same area
c. property with a high vacancy rate
d. rent-controlled property - CORRECT ANSWER-b. property where the rents are
similar to comparable properties in the same area.
Zoning requirements state that a lot must be at least four times the size of the building
located on the lot. An architect draws up plans for a building that is 20,000 square feet.
At least how many aces does the lot need to be?
a. 1
b. 2
c. 3
d. 4 - CORRECT ANSWER-B. 2
(20,000 x 4 = 80,000 sq.ft)
In order to exceed the required 80,000, you need a 2 acre lot. (43,560 x 2 = 87,120
sq.ft)
Tests to distinguish a fixture from a personal property include all of the following,
EXCEPT:
a. method of attachment
b. cost of the item
c. intent of the annexor
d. adaptability - CORRECT ANSWER-B. cost of the item
A primary advantage of owning a property in severalty is:
a. flexibility
b. inheritability
c. joint occupancy
d. shared risk - CORRECT ANSWER-A. flexibility
, All of the following are requirements for a valid deed, EXCEPT:
a. acknowledgement
b. adequate legal description
c. signature of grantor
d. words of conveyance - CORRECT ANSWER-A. acknowledgement
A homeowner has been sharing with a friendly neighbour the use of a driveway that
crosses both of their properties. However, the neighbour is about to move out, and the
remaining homeowner would like to make sure that she can continue to use the
driveway even if the new neighbour is not amenable to that. The homeowner should
request a/an:
a. easement
b. encumbrance
c. license
d. profit - CORRECT ANSWER-A. easement
A local ordinance states that no sign can extend more than two feet above the roofline.
The Morgans want to put a sign on their roof, but the sign is six feet high. To install their
sign legally, the Morgans must apply for a:
a. sign clearance
b. nonconforming use permit
c. variance
d. residual - CORRECT ANSWER-C. variance
A property is listed for $275,000. The buyers offer $265,000 and insist that the gourmet
six-burner stove remain with the property. When the signed offer is presented to the
sellers, the sellers accept the price, but want to take the stove with them. They cross out
the item about the stove, sign the form, and return it to the buyers. Under these
circumstances:
a. there is now a valid contract that has been signed by all parties
b. the offer has been invalidated and the buyers will need to being looking for a new
property
c. the sellers can turn around and accept the original offer, if the buyers won't go along
with giving up the stove
d. the original offer is terminated, and the sellers have made a counteroffer - CORRECT
ANSWER-D. the original offer is terminated, and the sellers have made a counteroffer
A seller's agent, upon meeting with a prospective buyer, becomes concerned that the
buyer is unlikely to be financially qualified. The agent should:
a. perform a full examination of the buyers finances
b. refuse to accept that buyers offer
c. relay those concerns to the seller, who will decide
d. withdraw from the listing - CORRECT ANSWER-C. relay those concerns to the seller,
who will decide
