Test Bank for Real Estate Principles Revised (2025) 7th
Edition by Ling.
(Terms,Questions and Answer,Notes)
A listing agreement in which the owner retains the right to sell the property without paying a commission
to the listing agent is known as
A) an open listing
B) an exclusive agency
C) a net listing
D) an exclusive right-to-sell
B) an exclusive agency
All of the following are basic elements of value EXCEPT
A) demand
B) Location
C) scarcity
D) utility
B) location
Ginnie Mae is a federal agency that backs
A) conventional loans
B) FHA and VA residential loans
C) hard money lenders
D) private lenders
B) FHA and VA residential loans
Parallel wooden beams that support flooring are called
A) sills
B) joists
C) posts
D) anchor bolts
B) Joists
A simplified alternative to capitalization of net income that does not take into account vacancies, bad
debts or expenses is called
A) building residual
B) gross income multiplier
C) 4-3-2-1 rule
D) land residual
B) gross income multiplier
,An example of an appurtenance that "runs with " or is transferred with the land is
A) a tree
B) an emblement
C) a fixture
D) stock in a mutual water company
D) stock in a mutual water company
A real estate broker who acts as a dual agent and represents both the buyer and the seller in the same
transaction must make sure that both parties
A) sign the escrow instructions
B) act in good faith
C) pay a commission
D) give their consent
D) give their consent
Redlining is the discriminatory practice by lenders of
A) steering buyers to particular neighborhoods.
B) refusing to show properties that are beyond a red line in the street
C) refusing to make loans in a particular neighborhood because of its geographic location.
D) inducing panic selling
C) refusing to make loans in a particular neighborhood because of its geographic location
If a home was built before 1978, the buyer has to be given the opportunity to have the home tested for A)
PVC B) termites
C) lead-based paint
D) plywood underlayment
C) lead-based paint
Reconciliation is the same as
A) qualification
B) correlation
C) summarization
D) averaging
B) correlation
The MOST significant difference between a mortgage and a deed of trust is that, after a trustee's sale
using a deed of trust, the trustor has
A) no post-sale right of redemption
B) a six-month redemption period.
C) a right of first refusal
D) a 72-hour redemption period
A) no post-sale right of redemption
The appraisal principle of substitution states that
,A)value increases by assembling parcels
B) there is a reasonable degree of economic similarity in an area
C) if property is scarce, prices will go up
D) the value of a property is determined by the cost of acquiring an equally desirable substitute property
D) the value of a property is determined by the cost of acquiring an equally desirable substitute
property
A will that is in the testator's own handwriting is called
A) a statutory will B) a witnessed will
C) a holographic will
D) a nuncupative will
C) a holographic will
A section contains
A) 640 acres
B) 36 townships
C) 5,280 linear feet
D) 43,560 square feet
A) 640 acres
the special fund established to help compensate parties who have obtained a judgment against licensees
that is uncollectible is called
A) the broker trust fund
B) the commissioner's fraud fund
C) the impound account
D) the recovery account
B) the commissioner's fraud fund
To qualify for a tax-deferred exchange, the trade must be for
A) no profit
B) trade or business property
C) prorated gain
D) like-kind property
D) like-kind property
The gradual addition to land through natural causes is called
A) alienation
B) prescription
C) avulsion
D) accretion
Accretion
A deed that conveys after-acquired title and contains implied warranties is
A) a quitclaim deed
B) a warranty deed
C) a trust deed
, D) a grant deed
D) a grant deed
The penalty for violating a covenant is NOT as harsh as violating
A) a deed restriction
B) a condominium bylaw
C) a subdivision deed restriction
D) a condition
D) a condition
For a federally related residential mortgage loan, the lender must give the borrower
A) a transfer disclosure statement form
B) an agency disclosure
C) a copy of the completed loan application
D) the Closing Disclosure form
D) the Closing Disclosure form
The instrument usually used to clear clouds on title or to terminate deed restrictions is
A) a quitclaim deed
B) a reconveyance deed
C) a trust deed
D) a warranty deed
A) a quitclaim deed
A lease in which a tenant pays a base rent plus some expenses is called
A) a percentage lease
B) a net lease
C) a gross lease
D) a graduated lease
B) a net lease
The vertical supports of a house frame are called
A) girders
B) studs
C) anchor bolts
D) sills
B) studs
California law requires that every single-family home that is sold has
A) a basement
B) an operable smoke detector
C) an energy efficient oven
D) an attic
B) an operable smoke detector
Edition by Ling.
(Terms,Questions and Answer,Notes)
A listing agreement in which the owner retains the right to sell the property without paying a commission
to the listing agent is known as
A) an open listing
B) an exclusive agency
C) a net listing
D) an exclusive right-to-sell
B) an exclusive agency
All of the following are basic elements of value EXCEPT
A) demand
B) Location
C) scarcity
D) utility
B) location
Ginnie Mae is a federal agency that backs
A) conventional loans
B) FHA and VA residential loans
C) hard money lenders
D) private lenders
B) FHA and VA residential loans
Parallel wooden beams that support flooring are called
A) sills
B) joists
C) posts
D) anchor bolts
B) Joists
A simplified alternative to capitalization of net income that does not take into account vacancies, bad
debts or expenses is called
A) building residual
B) gross income multiplier
C) 4-3-2-1 rule
D) land residual
B) gross income multiplier
,An example of an appurtenance that "runs with " or is transferred with the land is
A) a tree
B) an emblement
C) a fixture
D) stock in a mutual water company
D) stock in a mutual water company
A real estate broker who acts as a dual agent and represents both the buyer and the seller in the same
transaction must make sure that both parties
A) sign the escrow instructions
B) act in good faith
C) pay a commission
D) give their consent
D) give their consent
Redlining is the discriminatory practice by lenders of
A) steering buyers to particular neighborhoods.
B) refusing to show properties that are beyond a red line in the street
C) refusing to make loans in a particular neighborhood because of its geographic location.
D) inducing panic selling
C) refusing to make loans in a particular neighborhood because of its geographic location
If a home was built before 1978, the buyer has to be given the opportunity to have the home tested for A)
PVC B) termites
C) lead-based paint
D) plywood underlayment
C) lead-based paint
Reconciliation is the same as
A) qualification
B) correlation
C) summarization
D) averaging
B) correlation
The MOST significant difference between a mortgage and a deed of trust is that, after a trustee's sale
using a deed of trust, the trustor has
A) no post-sale right of redemption
B) a six-month redemption period.
C) a right of first refusal
D) a 72-hour redemption period
A) no post-sale right of redemption
The appraisal principle of substitution states that
,A)value increases by assembling parcels
B) there is a reasonable degree of economic similarity in an area
C) if property is scarce, prices will go up
D) the value of a property is determined by the cost of acquiring an equally desirable substitute property
D) the value of a property is determined by the cost of acquiring an equally desirable substitute
property
A will that is in the testator's own handwriting is called
A) a statutory will B) a witnessed will
C) a holographic will
D) a nuncupative will
C) a holographic will
A section contains
A) 640 acres
B) 36 townships
C) 5,280 linear feet
D) 43,560 square feet
A) 640 acres
the special fund established to help compensate parties who have obtained a judgment against licensees
that is uncollectible is called
A) the broker trust fund
B) the commissioner's fraud fund
C) the impound account
D) the recovery account
B) the commissioner's fraud fund
To qualify for a tax-deferred exchange, the trade must be for
A) no profit
B) trade or business property
C) prorated gain
D) like-kind property
D) like-kind property
The gradual addition to land through natural causes is called
A) alienation
B) prescription
C) avulsion
D) accretion
Accretion
A deed that conveys after-acquired title and contains implied warranties is
A) a quitclaim deed
B) a warranty deed
C) a trust deed
, D) a grant deed
D) a grant deed
The penalty for violating a covenant is NOT as harsh as violating
A) a deed restriction
B) a condominium bylaw
C) a subdivision deed restriction
D) a condition
D) a condition
For a federally related residential mortgage loan, the lender must give the borrower
A) a transfer disclosure statement form
B) an agency disclosure
C) a copy of the completed loan application
D) the Closing Disclosure form
D) the Closing Disclosure form
The instrument usually used to clear clouds on title or to terminate deed restrictions is
A) a quitclaim deed
B) a reconveyance deed
C) a trust deed
D) a warranty deed
A) a quitclaim deed
A lease in which a tenant pays a base rent plus some expenses is called
A) a percentage lease
B) a net lease
C) a gross lease
D) a graduated lease
B) a net lease
The vertical supports of a house frame are called
A) girders
B) studs
C) anchor bolts
D) sills
B) studs
California law requires that every single-family home that is sold has
A) a basement
B) an operable smoke detector
C) an energy efficient oven
D) an attic
B) an operable smoke detector
