1|Page
APYO REAL ESTATE LAW ACCURATE AND
FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
When a buyer receives an equitable title to a property, this entitles the buyer to:
A » assume the seller's existing loan
B » sue for specific performance
C » receive a novation
D » a non-freehold estate - ANSWER: (B) A signed contract gives the buyer an
equitable title (the right to receive the deed at a later date, usually closing).
Therefore, if the seller backs out of the contract, the buyer can sue for specific
performance - court action to force completion. An equitable title does not deal
with assuming loans (A). A novation is a new contract that takes the place of an
old contract (C). A non-freehold estate is a leasehold estate (D).
Which of the following terms describes a court action to bring both parties to a
contract back to their original position?
A » Reversion
B » Rescission
C » Reconveyance
D » Reverse annuity - ANSWER: Rescission (B) returns both parties to the status
quo, or the way they were before - back to square one. (A) deals with rights
reverting back to an original party, (C) is a document given a borrower once a loan
has been paid off in a trust deed state, and (D) is where older persons use the
equity in their house to obtain money each month to help them live in retirement.
A person with a large amount of equity in a home would like to obtain a new loan
using the equity in the home for investments. The existing mortgage on the home is
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3% less than what is currently available. Which of the following steps would
BEST accomplish this?
A » Obtain a package mortgage
B » Refinance the existing home mortgage
C » Obtain a satisfaction of mortage
D » Obtain a subordination agreement - ANSWER: (B) Refinancing the existing
mortgage to a larger amount allows the owner to use the equity as security for the
additional money to use for investments. A package mortgage (A) uses real and
personal property as security for the loan. A satisfaction (C) piece is issued by the
lender when the loan is totally paid off to record and clear the public record of the
lien. A subordination (D) agreement changes a first mortgage to a second
mortgage.
Each of the following contracts would be bi-lateral EXCEPT a:
A » lease purchase
B » sales contract
C » listing contract
D » lease option - ANSWER: (D) An option contract is a uni-lateral (one-way)
contract, not a bi-lateral (two-way) contract. (A) A lease purchase, (B) sales
contract and (C) listing contract are all bi-lateral contracts with two parties making
promises.
A contract would be considered executed when:
A » the deed has been delivered and accepted
B » all contract terms have been satisfied
C » the deed has been recorded
D » the deed has been acknowledged - ANSWER: An executed contract is one
where all promises have been completed (B). The deed being delivered and
accepted transfers title (A). Recording of the deed gives the public constructive
,3|Page
notice of the transaction (C). An acknowledged deed is one that has been signed in
the presence of a notary public (D).
Which of the following statements BEST illustrates the difference between a
bilateral and unilateral contract?
A » The number of parties involved
B » The performance obligation of the parties
C » The value of the object in question
D » The nature of the object in question - ANSWER: (B) With a bilateral
contract, one has a promise for a promise, where both parties have performance
obligations. With a unilateral contract, one has a promise for an action, where only
one party has a performance obligation. (A) In both bilateral and unilateral,
typically there are at least two parties involved. (C) The value of the object and (D)
the nature of the object really have nothing to do with the question.
In an effort to obtain listings, a real estate agent was handing out fliers in a
neighborhood telling people that communes were coming into the neighborhood.
This would be:
A » redlining
B » steering
C » dedication
D » blockbusting - ANSWER: (D) Trying to obtain listing by saying certain
groups of people are moving into the neighborhood is blockbusting and therefore
illegal under Fair Housing Laws. (A) Redlining is lenders refusing to make loans
in certain areas of a city. (B) Steering is directing buyers toward certain areas
based upon the buyers race, color, religion, etc. (C) Dedication is donating land to
the government.
A property manager was leasing units in an apartment complex. Which of the
following activities would the manager be allowed to do?
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A » Increase the security deposit of a tenant due to ethnic background
B » Check the background of a tenant regarding the tenant's financial status
C » Refuse to rent to a tenant based on race per the owner's instructions
D » Refuse to rent to women as women are prone to have loud parties -
ANSWER: (B) Checking out one`s financial status is allowed under Fair Housing
Laws. (A) Increasing the security deposit based on ethnicity, (C) refusing to rent
based upon race and (D) refusing to rent based on sex are all illegal under the Fair
Housing Laws.
A property manager leased a space to a handicapped person. The handicapped
person wanted to make some modifications to the space. The property manager can
require that the handicapped person:
A » pay a security deposit equal to six months rent when normally the amount is
equal to one months rent
B » pay the first and last months rent in advance rather than the usual first month
only
C » return the space to its original condition at the lessee's expense
D » pay the first six months rent in advance rather than usual monthly payments -
ANSWER: A handicapped can modify the space to accommodate the handicapped
person but must return the space to the landlord in the original condition (C). A
manager cannot change terms for a person who belongs to a protected class, such
as being handicapped (A), (B), (D).
An investor built a three story apartment complex with no elevators. Under the
1988 Fair Housing Amendments Act, which of the floors must be accessible to the
handicapped?
A » Ground floor only
B » First and second floors only
C » All floors
APYO REAL ESTATE LAW ACCURATE AND
FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
When a buyer receives an equitable title to a property, this entitles the buyer to:
A » assume the seller's existing loan
B » sue for specific performance
C » receive a novation
D » a non-freehold estate - ANSWER: (B) A signed contract gives the buyer an
equitable title (the right to receive the deed at a later date, usually closing).
Therefore, if the seller backs out of the contract, the buyer can sue for specific
performance - court action to force completion. An equitable title does not deal
with assuming loans (A). A novation is a new contract that takes the place of an
old contract (C). A non-freehold estate is a leasehold estate (D).
Which of the following terms describes a court action to bring both parties to a
contract back to their original position?
A » Reversion
B » Rescission
C » Reconveyance
D » Reverse annuity - ANSWER: Rescission (B) returns both parties to the status
quo, or the way they were before - back to square one. (A) deals with rights
reverting back to an original party, (C) is a document given a borrower once a loan
has been paid off in a trust deed state, and (D) is where older persons use the
equity in their house to obtain money each month to help them live in retirement.
A person with a large amount of equity in a home would like to obtain a new loan
using the equity in the home for investments. The existing mortgage on the home is
,2|Page
3% less than what is currently available. Which of the following steps would
BEST accomplish this?
A » Obtain a package mortgage
B » Refinance the existing home mortgage
C » Obtain a satisfaction of mortage
D » Obtain a subordination agreement - ANSWER: (B) Refinancing the existing
mortgage to a larger amount allows the owner to use the equity as security for the
additional money to use for investments. A package mortgage (A) uses real and
personal property as security for the loan. A satisfaction (C) piece is issued by the
lender when the loan is totally paid off to record and clear the public record of the
lien. A subordination (D) agreement changes a first mortgage to a second
mortgage.
Each of the following contracts would be bi-lateral EXCEPT a:
A » lease purchase
B » sales contract
C » listing contract
D » lease option - ANSWER: (D) An option contract is a uni-lateral (one-way)
contract, not a bi-lateral (two-way) contract. (A) A lease purchase, (B) sales
contract and (C) listing contract are all bi-lateral contracts with two parties making
promises.
A contract would be considered executed when:
A » the deed has been delivered and accepted
B » all contract terms have been satisfied
C » the deed has been recorded
D » the deed has been acknowledged - ANSWER: An executed contract is one
where all promises have been completed (B). The deed being delivered and
accepted transfers title (A). Recording of the deed gives the public constructive
,3|Page
notice of the transaction (C). An acknowledged deed is one that has been signed in
the presence of a notary public (D).
Which of the following statements BEST illustrates the difference between a
bilateral and unilateral contract?
A » The number of parties involved
B » The performance obligation of the parties
C » The value of the object in question
D » The nature of the object in question - ANSWER: (B) With a bilateral
contract, one has a promise for a promise, where both parties have performance
obligations. With a unilateral contract, one has a promise for an action, where only
one party has a performance obligation. (A) In both bilateral and unilateral,
typically there are at least two parties involved. (C) The value of the object and (D)
the nature of the object really have nothing to do with the question.
In an effort to obtain listings, a real estate agent was handing out fliers in a
neighborhood telling people that communes were coming into the neighborhood.
This would be:
A » redlining
B » steering
C » dedication
D » blockbusting - ANSWER: (D) Trying to obtain listing by saying certain
groups of people are moving into the neighborhood is blockbusting and therefore
illegal under Fair Housing Laws. (A) Redlining is lenders refusing to make loans
in certain areas of a city. (B) Steering is directing buyers toward certain areas
based upon the buyers race, color, religion, etc. (C) Dedication is donating land to
the government.
A property manager was leasing units in an apartment complex. Which of the
following activities would the manager be allowed to do?
, 4|Page
A » Increase the security deposit of a tenant due to ethnic background
B » Check the background of a tenant regarding the tenant's financial status
C » Refuse to rent to a tenant based on race per the owner's instructions
D » Refuse to rent to women as women are prone to have loud parties -
ANSWER: (B) Checking out one`s financial status is allowed under Fair Housing
Laws. (A) Increasing the security deposit based on ethnicity, (C) refusing to rent
based upon race and (D) refusing to rent based on sex are all illegal under the Fair
Housing Laws.
A property manager leased a space to a handicapped person. The handicapped
person wanted to make some modifications to the space. The property manager can
require that the handicapped person:
A » pay a security deposit equal to six months rent when normally the amount is
equal to one months rent
B » pay the first and last months rent in advance rather than the usual first month
only
C » return the space to its original condition at the lessee's expense
D » pay the first six months rent in advance rather than usual monthly payments -
ANSWER: A handicapped can modify the space to accommodate the handicapped
person but must return the space to the landlord in the original condition (C). A
manager cannot change terms for a person who belongs to a protected class, such
as being handicapped (A), (B), (D).
An investor built a three story apartment complex with no elevators. Under the
1988 Fair Housing Amendments Act, which of the floors must be accessible to the
handicapped?
A » Ground floor only
B » First and second floors only
C » All floors
