Modern Real Estate Practice/Colorado
Law and Practice Final Exam Fully
Solved.
A seller signed an exclusive agency contract with a brokerage firm. If the seller finds a
suitable buyer with no assistance, the firm is entitled to - Answer no compensation
from the seller.
A buyer who wants to know whether the title for a property is in good standing would
order a(n) - Answer abstract.
An estate in severalty is associated with which of the following? - Answer Sole and
separate ownership
A lease contract that specifies an end date for tenancy and does NOT require advanced
notice to terminate is a(n) - Answer estate for years.
A broker enters into a listing contract with a seller. The seller advertises and negotiates
a sale contract on her house. At closing, the broker is paid a full commission. The listing
contract must have been a(n) - Answer exclusive right to sell.
Conveyance of title occurs the moment a deed is - Answer delivered and accepted.
A lease in which a commercial tenant's rent amount stays the same for the term of the
lease and the tenant pays only rent to the landlord is what type of lease? - Answer
Gross
A brother and his sister were co-owners of a lot. The sister became the sole owner
automatically when the brother died. The form of ownership they had was - Answer
joint tenancy.
The document that creates a lien and acts as security for the promissory note is a -
Answer deed of trust.
The lower the loan-to-value ratio, the higher the - Answer owner's equity.
The property owner has given a potential buyer the right to buy the property at a set
price for a set period; this is, a(n) - Answer option.
The clause in all deeds that passes on the rights and obligations is known as - Answer
words of conveyance.
A lender is required to give the borrower a loan estimate - Answer within three days
after loan application.
An example of specific performance for breaching a real property purchase contract is -
Answer a court action to force compliance with the contract.
How would the buyer's earnest money deposit be entered on a closing statement in a
typical real estate transaction? - Answer Credit to buyer only
A recent zoning amendment has changed the area zoning from commercial to
, Which deed offers only two covenants or warranties? - Answer Special warranty
The priority of a first mortgage over a second mortgage is determined by the - Answer
date the mortgage was recorded in the county where the property is located.
A seller who wants to be excluded from paying capital gains tax on a principal residence
will need to - Answer live in the home two out of five years.
The city wants to acquire private land for a park. The city can obtain the land by paying
fair value under the right of - Answer eminent domain.
The primary function of the secondary market is to - Answer buy loans from the
primary market so banks will have more money to loan.
A $2,400 term loan has a 10% annual interest rate. What is the monthly payment? -
Answer $20
In a special warranty deed, the grantor promises - Answer to defend the title against
any encumbrances during the grantor's period of ownership.
Which federal law impacts how the terms of a home offered for sale maybe advertised?
- Answer Truth in Lending Act
A prospective buyer signs an offer to purchase a residential property. All of the following
circumstances would automatically terminate the offer EXCEPT - Answer the seller
received a better offer from another buyer.
An example of voluntary alienation is - Answer a deed.
Should the buyer default, an example of liquidated damages to the seller in a purchase
contract could be - Answer the forfeiture of the earnest money deposit.
A buyer wants to run a small business out of a residential property. In this case, the
broker should - Answer recommend that the buyer verify with zoning that the use will
be allowed.
Whose signature must appear on the offer to purchase real estate for it to become a
contract? - Answer Buyer's and seller's
Which would be found in an appraisal but NOT in a CMA? - Answer Description of
highest and best use
An example of constructive eviction would be a tenant - Answer who moves because
the unit no longer has water.
A buyer under an executory contract has found numerous inspection issues the seller is
unwilling to repair. The seller and the buyer agree to terminate the contract with all
things of value returned to each party. This is known as - Answer mutual rescission.
How will taxes paid in arrears show on the closing statement? - Answer Debit seller,
credit buyer prorated share
A broker listed a house for $247,900. A member of a racial minority group saw the
house and was interested in it. When the prospective buyer asked the broker the price
of the house, the broker said it was listed for $253,000 and that the seller was very firm
Law and Practice Final Exam Fully
Solved.
A seller signed an exclusive agency contract with a brokerage firm. If the seller finds a
suitable buyer with no assistance, the firm is entitled to - Answer no compensation
from the seller.
A buyer who wants to know whether the title for a property is in good standing would
order a(n) - Answer abstract.
An estate in severalty is associated with which of the following? - Answer Sole and
separate ownership
A lease contract that specifies an end date for tenancy and does NOT require advanced
notice to terminate is a(n) - Answer estate for years.
A broker enters into a listing contract with a seller. The seller advertises and negotiates
a sale contract on her house. At closing, the broker is paid a full commission. The listing
contract must have been a(n) - Answer exclusive right to sell.
Conveyance of title occurs the moment a deed is - Answer delivered and accepted.
A lease in which a commercial tenant's rent amount stays the same for the term of the
lease and the tenant pays only rent to the landlord is what type of lease? - Answer
Gross
A brother and his sister were co-owners of a lot. The sister became the sole owner
automatically when the brother died. The form of ownership they had was - Answer
joint tenancy.
The document that creates a lien and acts as security for the promissory note is a -
Answer deed of trust.
The lower the loan-to-value ratio, the higher the - Answer owner's equity.
The property owner has given a potential buyer the right to buy the property at a set
price for a set period; this is, a(n) - Answer option.
The clause in all deeds that passes on the rights and obligations is known as - Answer
words of conveyance.
A lender is required to give the borrower a loan estimate - Answer within three days
after loan application.
An example of specific performance for breaching a real property purchase contract is -
Answer a court action to force compliance with the contract.
How would the buyer's earnest money deposit be entered on a closing statement in a
typical real estate transaction? - Answer Credit to buyer only
A recent zoning amendment has changed the area zoning from commercial to
, Which deed offers only two covenants or warranties? - Answer Special warranty
The priority of a first mortgage over a second mortgage is determined by the - Answer
date the mortgage was recorded in the county where the property is located.
A seller who wants to be excluded from paying capital gains tax on a principal residence
will need to - Answer live in the home two out of five years.
The city wants to acquire private land for a park. The city can obtain the land by paying
fair value under the right of - Answer eminent domain.
The primary function of the secondary market is to - Answer buy loans from the
primary market so banks will have more money to loan.
A $2,400 term loan has a 10% annual interest rate. What is the monthly payment? -
Answer $20
In a special warranty deed, the grantor promises - Answer to defend the title against
any encumbrances during the grantor's period of ownership.
Which federal law impacts how the terms of a home offered for sale maybe advertised?
- Answer Truth in Lending Act
A prospective buyer signs an offer to purchase a residential property. All of the following
circumstances would automatically terminate the offer EXCEPT - Answer the seller
received a better offer from another buyer.
An example of voluntary alienation is - Answer a deed.
Should the buyer default, an example of liquidated damages to the seller in a purchase
contract could be - Answer the forfeiture of the earnest money deposit.
A buyer wants to run a small business out of a residential property. In this case, the
broker should - Answer recommend that the buyer verify with zoning that the use will
be allowed.
Whose signature must appear on the offer to purchase real estate for it to become a
contract? - Answer Buyer's and seller's
Which would be found in an appraisal but NOT in a CMA? - Answer Description of
highest and best use
An example of constructive eviction would be a tenant - Answer who moves because
the unit no longer has water.
A buyer under an executory contract has found numerous inspection issues the seller is
unwilling to repair. The seller and the buyer agree to terminate the contract with all
things of value returned to each party. This is known as - Answer mutual rescission.
How will taxes paid in arrears show on the closing statement? - Answer Debit seller,
credit buyer prorated share
A broker listed a house for $247,900. A member of a racial minority group saw the
house and was interested in it. When the prospective buyer asked the broker the price
of the house, the broker said it was listed for $253,000 and that the seller was very firm
