Real Estate License Exam Review 4
Question and answers verified to pass
What is a tax certificate? - correct answer A legal document issued for a
property with delinquent property taxes.
A ___________________ is issued when property taxes aren't paid, and can
be sold if taxes aren't paid by the date of the sale. - correct answer tax
certificate
John and Tara have lived in their home for 23 years and are excited to move
to Florida for retirement. As homeowners, which right allows them to sell their
home? - correct answer Disposition
The Simpsons are buying a five-acre tract that has always been part of a
larger parcel. When the owners of the large acreage decided to subdivide it,
they needed to have a legal description created for the five-acre lot. What was
used as the starting point for creating that legal description? - correct answer
A survey
A survey is used to create, verify, or correct a ________________. It's a
professional on-site measurement of the lot lines and dimensions of a
property. - correct answer legal description
A valid option contract must state how long the option period is. If it doesn't, a
court will require the optionor to make the option period for a
_________________ - correct answer "reasonable time."
While contingencies provide important safeguards, buyers should bear in
mind that the inclusion of ______________________ makes it less likely that
, their offer will be accepted, especially in a competitive bidding situation. -
correct answer numerous contingencies
Ivan locked in a 3.04% interest rate for his home purchase. His lender
charged him a 3% loan commitment fee. His loan amount was $424,000 and
his appraised value was $525,000. Unfortunately, Ivan's financing fell through.
He owes the lender ______. - correct answer $12,720 | In this case, Ivan paid
3% of $424,000, which equals $12,720 for his loan commitment fee.
Rental companies and brokerages that charge a fee for providing rental listing
information must give prospective tenants _________________. - correct
answer A receipt with a disclosure about refunds with the approved language
A trustee is holding title to Cassandra's house until the loan is paid in full.
Which type of security instrument was used? - correct answer Deed of trust
Lawrence is a buyer closing on a home purchase for which he's obtaining
financing. He receives a Loan Estimate from his lender. What's the purpose of
this document? - correct answer To detail the estimated closing costs for
Lawrence's loan
Homebuyers who withdraw individual retirement account (IRA) funds under
the first-time homebuyer program must use those funds within ______ to
acquire, build, or improve a residence, or to contribute toward closing costs. -
correct answer 120 days
An area of 640 acres is equal to ______. - correct answer One square mile
Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the
contract they sign, Jim is identified only as "the neighbor." Which statute or
contract element does this violate? - correct answer The statute of frauds
Question and answers verified to pass
What is a tax certificate? - correct answer A legal document issued for a
property with delinquent property taxes.
A ___________________ is issued when property taxes aren't paid, and can
be sold if taxes aren't paid by the date of the sale. - correct answer tax
certificate
John and Tara have lived in their home for 23 years and are excited to move
to Florida for retirement. As homeowners, which right allows them to sell their
home? - correct answer Disposition
The Simpsons are buying a five-acre tract that has always been part of a
larger parcel. When the owners of the large acreage decided to subdivide it,
they needed to have a legal description created for the five-acre lot. What was
used as the starting point for creating that legal description? - correct answer
A survey
A survey is used to create, verify, or correct a ________________. It's a
professional on-site measurement of the lot lines and dimensions of a
property. - correct answer legal description
A valid option contract must state how long the option period is. If it doesn't, a
court will require the optionor to make the option period for a
_________________ - correct answer "reasonable time."
While contingencies provide important safeguards, buyers should bear in
mind that the inclusion of ______________________ makes it less likely that
, their offer will be accepted, especially in a competitive bidding situation. -
correct answer numerous contingencies
Ivan locked in a 3.04% interest rate for his home purchase. His lender
charged him a 3% loan commitment fee. His loan amount was $424,000 and
his appraised value was $525,000. Unfortunately, Ivan's financing fell through.
He owes the lender ______. - correct answer $12,720 | In this case, Ivan paid
3% of $424,000, which equals $12,720 for his loan commitment fee.
Rental companies and brokerages that charge a fee for providing rental listing
information must give prospective tenants _________________. - correct
answer A receipt with a disclosure about refunds with the approved language
A trustee is holding title to Cassandra's house until the loan is paid in full.
Which type of security instrument was used? - correct answer Deed of trust
Lawrence is a buyer closing on a home purchase for which he's obtaining
financing. He receives a Loan Estimate from his lender. What's the purpose of
this document? - correct answer To detail the estimated closing costs for
Lawrence's loan
Homebuyers who withdraw individual retirement account (IRA) funds under
the first-time homebuyer program must use those funds within ______ to
acquire, build, or improve a residence, or to contribute toward closing costs. -
correct answer 120 days
An area of 640 acres is equal to ______. - correct answer One square mile
Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the
contract they sign, Jim is identified only as "the neighbor." Which statute or
contract element does this violate? - correct answer The statute of frauds
