Solution
the price at which a willing and informed buyer would buy and a willing and informed seller
would sell is called the
a. assessed value
b. book value
c. income approach to value
d. market value - Answer: d. market value
the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment - Answer: b. office building
Page 1 of 24
,the G's purchased a house from the T's. the G's agreed to the following terms: monthly
payments of $650 to the T's and the balance to be paid in full after 7 years. at the time the
balance is paid, the T's will give the G's a warranty deed transferring title. in this situation, what
type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed - Answer: d. contract for deed
the provision in a mortgage or deed of trust that gives the lender the right to call the entire
balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause - Answer: a. acceleration clause
a broker who represents a buyer is trying to negotiate on the buyer's behalf in a potential
transaction. the broker realizes that by negotiating a reduced price for the buyer, the broker's
commission will also be reduced. in this situation, the broker is obligated to negotiate the BEST
price for the
A. buyer and broker
b. buyer
c. seller
d. brokerage - Answer: b. buyer
Page 2 of 24
, K and R bought a house as tenants in common. If K dies, which of the following statements
about ownership of the house is CORRECT?
a. it automatically becomes tenancy in severalty
b. it is divided, with R retaining R's original interest and the balance going to K's estate
C. R holds fee simple ownership in k's share of the property
d. R holds life estate ownership in K's share of the property - Answer: B. it is divided, with R
retaining R's original interest and the balance going to K's estate
a visually-impaired person with a service animal completes an application for rental of an
apartment that has a vigorously enforced "no pets" policy in the building. according to the
federal fair housing act the owner MAY:
a. refuse to rent as a result of policy
b. require the person to house the animal outside
c. require the person to restore any damage that results from the animal
d. increase the customary security deposit - Answer: c. require the person to restore any
damage that results from the animal
Under a sales contract, the legal remedy that may be used to force the seller to consummate
the sale is called
a. adverse possession
b. foreclosure
c. specific performance
d. forcible detainer - Answer: c. specific performance
a developer who leases real property from the owner with the intent of constructing an office
building has which of the following interests in the property?
Page 3 of 24