1. When can the tax on a capital gain be deffered?
A Sale of an investment property
B First time sale of a rental property
C Property exchange
D Sale of a business

2. Which of the following would have an interest in real estate but not an estate?
A Lease
B Life tenant
C Fee conditional ownership
D Easement

3. Residential close of escrow disclosures would be governed by which of the following?
A Fair housing
B Regulation Z
C Real estate Settlement Procedures Act
D Securities Act 1933

4. Which of the following listed below would not be considered a “triggerclause” per Regulation Z?
A 7% interest
B $985 month payment
C 8 ¼ APR
D $50,000 down required

5. Which of the following would not be considered an income tax deduction?
A Tax depreciation on your personal residence
B Interest on a second home
C Interest pad on the loan
D Property taxes

6. Studs are connected at the top and bottom by which of the following?
A Ridge board
B Mud sill
C Top and sole plate
D Joists

7. The overhang partition of a roof is called
A joist
B stud
C fascia
D eave

8. A real estate investment that acts as a mutual fund but does not give you individual ownership is best described as a:
A Real Estate Investment Trust, a security instrument
B Real Estate Option
C Exchange
D Fee Simple Estate

9. Money that is placed into a community savings account but has earned solely by one individual is called:
A Sole and Separate
B Community Property
C In severalty
D Would be determined by a will

10. When figuring the capital gain from the sale of a property, which of the following would lower your gain?
A Tax depreciation
B Original cost
C Appreciation
D Capital improvements

11. When a tenant moves out of the property due to an electrical fire this eviction is called:
A Actual
B Constructive
C Detainer
D Sufferance

12. A good faith estimate must be given to the borrower within:
A Three days of loan application
B Three days after closing
C Three days after recordation
D Seven days after loan application

13. When a testator dies, title to real property that was held in joint tenancy transfers:
A After probate
B Immediately
C When recorded at the secretary of state
D 60 days after death

14. When a grantor gives a covenant to the grantee promising that no liens exist against the property except those revealed, this is known as:
A covenant of Seisin
B Covenant of Laches
C Covenant of Quiet Enjoyment
D Covenant Against Further Encumbrances

15. Which of the following listed below would be considered personal property?
A Easement appurtenant
B Fixtures
C Leasehold improvements
D Promissory Note

16.  When a group of people hold title as tenants in common with an agreement to use the property at separate times, it is called:
A Sole & Separate
B Right of Survivorship
C Time & Share
D In Severalty

17. A homeowner can build equity in which of the following ways?
A Obtaining a loan for the longest term possible
B Appreciation and leverage
C Refinancing
D Appreciation and amortization

18.  When a buyer is given a promise that the grantor has the right to convey the property,
called:
A Further assurance
B Warranty Forever
C Covenant of Seisin
D Special Warranty

19.  When a borrower’s home is foreclosed upon due to the non payment of mortgage payments, which of the following gives the borrower the six months to satisfy the debt?
A Reinstatement Rights
B Equitable Period of Redemption
C Forfeiture Period
D Statutory Period of Redemption

20.  When a property is sold at a deed of trust foreclosure the proceeds are distributed as follows:
A First lien, second lien, property taxes
B Expenses of sale property taxes, 1st lien, 2nd lien
C Expenses of sale, 1st lien, 2nd lien, property taxes
D IRS lien, 1st lien, property taxes

21.  When a person acquires an easement by prescription the time can be accumulated by many property owners this is called:
A Tacking
B License
C Devise
D Accretion

22. All of the following would be a lien on real property except:
A Lease for years
B First mortgage
C Property taxes
D Property assessment

23. When a buyer signs a contract, he has an interest in the property known as:
A Legal title
B Ostensible title
C Equitable title
D Recorded title

24.  What regulation places a limit on fees a lender can charge in escrow for impound
accounts?
A. Regulation Z
B. Fair Housing
C. RESPA
D. Statute of Fraud

25. Which of the following is not part of an appraisal report?
A. Property Income
B. Buyers sweat equity
C. Cost of construction
D. Market analysis of the area

26. A use of a property that produces the greatest net return is called:
A. Substitution
B. Highest and best use
C. Progression
D. Market value

27.  If a building has functional obsolescence, it would be lacking:
A. Adequate rest rooms
B. Access to retail stores
C. Services in the area
D. Freeway access

28.  Which of the following would not relate to homogeneity?
A. Adding a pool in an upscale neighborhood
B. Adding a block wall while others have wooden fences
C. Painting a house a different color than the others
D. A home in the area that rents rooms out to day renters

29.  What appraisal approach would be used when appraising an older home?
A. Cost
B. Income
C. Market
D. Highest and Best Use

30.  An old home in an area of a new home development would be appraised using wha
approach?
A. Cost
B. Market
C. Income
D. Highest and Best Use

31.  The replacement cost of a property minus the three types of deprecation is higher 1
the present market value of similar properties. This would mean:
A. Appreciation has occurred in the area
B. Cap rates have gone down
C. The local real estate market has declined in value
D. Construction costs have gone up

32. Which of the following would not relate to an appraisal?
A Highest and best use
B Special usage property
C Loan to value ratio
D Local zoning regulations

33. Economic life of a building would be:
A The actual age of the building
B The effective age of the building
C Period of time it remains profitable to operate
D Replacement period minus depreciation

34. A lease where the lessee will pay a fixed rent plus a portion of the gross sales is called:
A Index
B Percentage
C Positive leasehold
D Graduated

35.  When a document is recorded to give public notice this is called:
A Actual notice
B Constructive notice
C Estoppel notice
D Obtensible notice

36. A forcible entry and detainer would be an action taken by which of the following partie~
A Mortgagor
B Mortgagee
C Vendor
D Lessor

37. When a lease is assigned, all of the following are true except:
A The original lessee is free from responsibility
B A new lessee is created
C The original lessor remains the same
D An assignment can be done without the lessor’s approval

38. When a lease is inherited the estate would be known as:
A Fee simple
B Leasehold
C Sufferance
D At will

39. When a principal appoints a person to represent them in a real estate transaction this erson is known as the:
A Designated broker
B Salesperson of the broker
C Implied agent
D Limited partner

40. Which actions are allowable under the Federal Fair Housing Act
A Showing property in a specific religious area due to the buyers request
B Assigning a salesperson to a buyer of the same race
C .Assigning a salesperson to an office due to religious beliefs
D Telling a property owner that minorities have moved into the area

4l. Which of the following is not a type of agency?
A. Expressed
B. Implied
C. Actual
D. Intermediate

42. If at the end of a lease the tenant is allowed to remain for indefmite length of time, tl~
best described as:
A. Estate at sufferance
B. Estate atwill
C. Estate for years
D. Holdover tenancy

43.  A buyer wishes to have the right to buy a property at a certain time and certain price
This right is called:
A. First right of refusal
B. Lease purchased
C. Option to buy
D. An agreement for sale

44.  What legislative act said you may not discriminate on the sale of real or personal pro
based on race?
A. 1989 Fair Housing Act
B. 1866 Civil Rights Act
C. 1972 Equal Opportunity Act
D. 1779 Declaration of Law

45.  A broker is a property manager for an owner and collects the monthly rents. The ow
dies. What is the status of the property management agreement?
A. Terminated upon death of owner
B. Valid until expiration
C. Valid leases expire
D. Can only be terminated by the heirs

46. When a licensee is charged for punitive damages under the Fair Housing law the fine
would be?
A. $500
B. $750
C. $5,000
D. $10,000

47. When the buyer and seller agree to terminate the contract this is called:
A. Ratification
B. Recission
C. Exclusion
D. Exculpatory

48. When a new a stock is being offered to the public, which of the following would most
likely be off~red as a disclosure?
A. Appraisal
B. Prospectus
C. RESPA booklet
D. APR information

49. Which of the following would not be included in the bundle of rights of ownership?
A. Usage
B. Possession
C. Sell the property at any time
D. Refuse to sell under Eminent Domain

50. What would it cost to do the following job? 27 ft, 40 ft, 9 ft at the cost of $3.50 per cube ya
A. $1,260
B. $3,402
C. $1,079
D. $1,295

51. What type of deed would normally be used to clear a defect on title?
A. Warranty Deed
B. Special Warrant
C. Disclaimer
D. Quit Claim

52.  If the cap rate on a property is 10% and the income property has 80 units renting at ~ per month, what would be the value if the expenses are $40,000 per year and the vacancy factor is 5%?
A. $3,920,000
B. $3,704,000
C. $3,870,000
D. $4,150,000

53. If a person dies intestate the estate will:
A. Be handled by an administrator
B. Be handled by an executor
C. Will be given to the heir named in the will
D. Go to the state

54.  If a party wants to maximize leverage, he should:
A. Pay cash
B. Have the highest loan to value ratio
C. Have a low loan to value ratio
D. Diversify into many investments

55. When a person is chosen by the parties in a real estate transaction to give an opinion
is not binding on the parties, this person is called:
A. Interpleader
B. Arbitraitor
C. Judge
D. Mediator

56.  A party lives on a property without permission of the owner. After the legal required t
period if the occupant receives title to the property it was done so by:
A. Easement by prescription
B. Adverse possession
C. Escheat
D. Eminent Domain
 

57. When a business is owned by one person it would be called:
A. Tenancy for years
B. In Severalty
C. Joint tenancy
D. Tenancy in common

58. What lien would be ahead of a lender's first mortgage?
A. Mechanics lien
B. Property taxes
C. Special assessment
D. Judgement

59. Which of the following deeds listed below would contain the warranty forever?
A. Special Warranty
B. General Warranty
C. Bargain and Sale
D. Disclaimer

60. A property is sold but the legal title remains in the seller’s name. What type of
instrument was used to complete the sale?
A. Mortgage
B. Deed of Trust
C. Agreement for sale
D. Option

61. When a property increases in value but the owner did nothing to cause the increa
would be called:
A. Acceleration
B. Regression
C. Unearned increment
D. Economic Life

62. When a debt will be paid off by making constant level payments this is called:
A. Interest only
B. Blanket loan
C. Graduated payment
D. Amortized loan

63. What is the advantage of a sale with a leaseback?
A. The seller becomes the lessor
B. The seller frees up cash for other uses
C. The buyer of the building becomes the lessee
D. Seller can depreciate the building over 39 years

64. When a person receives real estate through a will, which of the following is true?
A. After probate the heirs would receive the real property
B. The heirs would receive a bequest
C. Probate is not required
D. All trusts would be terminated if there was a will

65. For a person to acquire title by adverse possession they must occupy the property for:
A. 3 years
B. 7 years
C. 10 years
D. 12 years

66. In an agency relationship the primary ethical duty of a broker is to:
A.       Disclose all items to all parties
B. Represent all parties
C. Represent neither buyer or seller
D. Represent the principal

67. When a minor enters into a real estate contract the status of the contract is:
A. Void
B. Voidable by the minor only
C. Enforceable by buyer and seller
D. Illegal per statute of fraud

68. A broker has a listing on a property which later results in a contract and escrow. The buyer and seller agree to cancel the contract and escrow. What is the status of the brokers commission?
A. Broker is entitled to a commission
B. No commission will be due
C. Broker can only receive costs
D. Broker has no legal recourse

69. All of the following are true regarding a listing agreement except:
A. Signed by the parties
B. Be approved by the commissioner
C. Can be an open listing
D. Contains a beginning and ending date

70. The seller of a listed property instructs the broker not to show the property to a particulai
religious group. The broker should:
A. Obey the instructions
B. Refuse or revoke the listing
C. Obey only if in writing
D. Allowed if the religious group is not a corporation

71. When a salesperson obtains a listing it is:
A. Property of the salesperson
B. Property of the broker
C. Assignable to another broker
D. Property of the multiple listing

72. When a voluntary transfer of real estate takes place according to a will, this would be
called:
A. Estoppel
B. Subrogation
C. Acceleration
D. Alienation

73. When a property is in a foreclosure the borrower has a period of redemption. Which
the following is false regarding the redemption period.
A. All mortgage foreclosures have a redemption period
B. The redemption time is set by law
C. The redemption period would only exist if property taxes are current
D. The redemption period allows the borrower to pay the debt

74. What would be the reserves required by a borrower if the following facts exist? 3 months taxes 4 months insurance; 3 months mortgage insurance, assessed property value is $75,000; tax rate is $6.20 per 100 dollars of assessed value; annual insurance is $420; mortgage insurance is .3% annual; the loan is $180,000 at 7% interest.
A. $1,472.50
B. $1,437.50
C. $2,437.50
D. $2680.50

75. A person is selected to settle a dispute between a buyer and seller. The decision will be
binding on all parties. This person is called:
A. Arbitrator
B. Middle man
C. Trustee
D. Executor

76. When residential housing is being occupied by a tenant for a period of time this is called:
A. Devise
B. Tenement
C. Tenancy in common
D. Fee simple

77. Which of the following listed below best describes the purpose of a trustee? Hold the note in a mortgage
A. Hold the note in a mortgage
B. Foreclose in a deed of trust
C. Act as a lender in an agreement for sale
D. Enforce property deed restrictions
 

78. Which of the following listed below would make a real estate contract voidable? Oral agreement
A. Oral agreement
B. A contract with a two year close of escrow
C. Signed by a power of attorney
D. Signed by a minor

79. All of the following statements are true regarding discount points except:
A. They increase the lenders yield
B. They reduce the lenders yield
C. They are usually 1% of loan amount
D. They decrease the loan term

80. If a lender is doing business in a lien theory state, which of the following is true? Legal title is held by the beneficiary
A. Legal title is held by the beneficiary
B. Legal title is held by the mortgagee
C. Legal title is held by mortgagor
D. Legal title is held by the trustor

81.  Which of the three appraisal approaches takes into account depreciation?
A. Cost
B. Income
C. Market
D. Highest and best use

82. When a person dies with a will, which of the following statements would be false?
A. An executor would oversee the probate process
B. Heir may contest the will
C. The estate would not be subject to probate because the party died with a will
D. The estate could be subject to taxes before any property is transferred

83. The best example of leverage would be:
A. Paying cash
B. Having a low loan to value ratio
C. Having a high loan and low down
D. Investing in mutual funds

84. How would past due taxes appear on a title report?
A. As an encumbrance
B. As an encroachment
C. As a Lis pendens
D. As adverse possession

85. In appraisal terminolo~r, what is meant by marginal land?
A. Land that is a good bargain
B. Land near a buffer zone
C. Land that does not always cover the cost of operation
D. Land that is in excess of the building

86. When a loan is secured by a deed of trust, who holds the deed of trust document?
A. Mortgagee
B. Mortgagor
C. Trustor
D. Beneficiary

87. Which of the following would not be part of a deed of trust?
A. Alienation
B. Defeasance
C. Acceleration
D. Habendum

88. A buyer is buying a business that includes real arid personal property. The type of bar
the buyer would obtain us called:
A. Blanket
B. Package
C. Open end
D. Chattel

89. If the Federal Reserve decreases the money supply the result would be:
A. Higher interest rates
B. Lower interest rates
C. Loan rates are unaffected
D. FHA rates would be lower

90. Which of the following is not a security instrument?
A. Note
B. Deed of Trust
C. Mortgage
D. Agreement for Sale

91. When a lender will agree to change loan positions this action is called:
A. Subrogation
B. Subordination
C. Alienation
D. Defeasance

92. An open-end loan would do which of the following?
A. Allow for sums of money to be loaned as a project progress
B. Will act as a package loan
C. Will serve as a builders blanket loan
D. Will be a long term loan to pay off a construction loan

93. Based on the theoiy of supply and demand what is the issue when there are many higi
price homes available but very few mid-priced homes available?
A. The market is in a state of regression
B. It is a buyers market in high priced homes and sellers marked in mid-prices homes
C. It is a buyers market in both markets
D. It is a sellers market in both

94.  Why would a buyer most likely obtain a flexible payment loan?
A. Lower income today but increases due in the near future
B. Low income on government assistance programs
C. A buyer who wants the payment to adjust up or down on an annual basis
D. An applicant with poor credit

95. A buyer wishes to buy an older home in a low-income area. This home is in need of rehabilitation but has a good future due to a growing economy. Which of the following loans would best suit the buyers needs.
A. FHA - 2O3K
B. Reverse annuity
C. Variable rate
D. Joint venture

96. The value one is to pay today for future rental income is called:
A. Depreciation
B. Equity
C. Exchange value
D. Capitalization Value

97. The loan APR rate is best compared to which of the following?
A. Effective rate
B. Discounted rate
C. Reserve rate
D. Margin rate

98. When a buyer is using 100% leverage in a transaction they would least likely be
 interested in:
 A. lonng term loan
 B. Short tern loan
C. Amortized loan
 D. Principal and interest loan

99. A leases to B and A will pay all costs of operation plus all repairs. This lease is called:
A. Net
B. Gross
C. Percentage
D. Index

100. The very first transfer of real property from a government to a private party is called:
A. Deed of Trust
B. Deed of Reconveyance
C. Patent Deed
D. Sheriff’s Deed

101. When a note and deed of trust is paid in full, the lender is required to issue a release of This is called a:
A. Alienation Clause
B. Subrogation
C. Defeasance
D. Assignment

102. When a party breaks a sales contract the other party may elect to:
A. Sue for specific performance
B. Sue for adverse possession
C. Sue for prescription
D. Sue for criminal damages

103. The law that governs the duty between an agent and the principal is called:
A. Law of Agency
B. RESPA
C. Reg Z
D. Federal Fair Housing

104. A spouse owns separate income property. When do the rents become community
property?
A. When funds are commingled
B. When the property is listed for sale
C. If the spouse is named in a will
D. The funds are community property in all cases

105. A married couple buys a house with community funds but upon the death of one it wil]
automatically pass the surviving spouse. This type of ownership is called:
A. Tenancy in common
B. Joint tenancy
C. Sole & Separate
D. Estate in Revision

106. Which of the following liens has a different process than any other lien and no money Ii
been loaned?
A. Home Equity Loan
B. First Deed of Trust
C. Mechanics Lien
D. Re-Mortgage of a property

107. A salesperson is working for a principal, but the salesperson exceeds the authority that was given in the agreement. The principal does nothing to correct the actions of the salesperson and the public is lead to believe that the action were with authority. This type ol agency is best called:
A. Dual
B. Limited
C. Estoppel
D. Voluntary

108. Which of the following is not a tax deduction on your personal residence?
A. Interest on the loan
B. Property taxes
C. Depreciation
D. Interest on a second residence

109. A person wants to buy a property in the future, but also wants the right to reject the off
This is called:
A. First Right of Refusal
B. Option
C. Lease Purchase
D. Exchange

110. A salesperson tells people in a neighborhood that minority families are moving into th
area. The salesperson actions would be called:
A. Steering
B. Blockbusting
C. Redlining
D. Anti-trust

111. Two parties enter into an oral agreement to sell real estate, if the agreement is breached
the recourse is:
A. No legal course of action
B. Suit for specific performance
C. Suit for adverse possession
D. Suit for forcible detainer

112. A salesperson receives an offer on a listing that is much lower than the listed price. W1~
should the sales person do?
A. Ignore the offer
B. Present the offer
C. Counter the offer for the seller
D. Reject the offer for the seller

113.A real estate licensee can prepare all the following except:
A. Listing
B. Purchase contract
C. Deed
D. Appraisal

114. A broker runs an ad for a salesperson to work certain hours and holidays. This
salesperson would most likely be considered:
A. Employee
B. Part-time sub-agent
C. Independent contractor
D. Dual agent

115. A lender refuses to loan or limit loans in a certain geographical residential area. This
action is called:
A. Steering
B. Blockbusting
C. Redlining
D. Violation of RESPA

116. A salesperson is instructed by the seller not to show the property to certain type of
people. What should the salesperson do?
A. Follow the seller’s orders
B. Obtain the instructions in writing
C. Explain the Fair Housing Law to the seller
D. Refuse the listing unless the sellers rescinds the request

117. According to the Statute of Fraud, all of the following must be in writing except:
A. A lease for more than one year
B. A real estate purchase contract
C. A listing on business property
D. A lease of one year or less

118. When a grantor promises the buyer that he has the right to convey the property. This
promise is called:
A. Seizen
B. Quiet enjoyment
C. Warranty forever
D. Habendum clause

119. Which of the following would be a conflict of interest for an appraiser?
A. Changing a fee for time and mileage
B. Changing a fee based on property value
C. Changing a fee lower than custom
D. Changing a fee based on difficulty

120. When people will pay more for a property but there is no objective reason to do so, this is
mostly likely due to:
A. Appraisal
B. Square feet
C. Situs
D. Amenities

121. A section of lumber that supports the roofmg material is called:
A. Truss
B. Eace
C. Sill
D. Stud

122. An interest in real estate which does not result in actual ownership but a stock interest
is called:
A. Option interest
B. Future interest
C. Securities interest
D. Remainder interest

123. The horizontal members that support the floor are called:
A. Studs
B. Joists
C. Sills
D. Plate

124. Which of the following would be a fixture?
A. Annual Crops
B. Free standing range
C. A storage shed attached to a slab
D. Plants in outside pots

125. Boot is best defmed as:
A. Mortgage relief
B. Like for like property
C. Personal property given to make up the difference in equity
D. The difference between long and short term capital

126. In periods of low interest rates lenders may rush to make loans that are:
A. Short term
B. Long term
C. Negative amortization
D. Package loans

127. When constructing a home, the foundation would rest on which of the following?
A. Joist
B. Footing
C. Sill
D. Stud

128. You are asked to give a market analysis of the following information. Past sales include
$92,000 comp., $104,000 comp., 110,000 comp. You assign 75% value to comp. #1; 15% to
comp. #2; 10% to comp. #3. What is the estimate of value?
A. $96,500
B. $95,600
C. $108,500
D. $102,000

129. A buyer spends months with a builder negotiating the details to build a home. This typ of home would be called:
A. Track home
B. Custom home
C. Off-line home
D. Exenipt subdivision home

130. A brokerage house has hourly wage staff and commissioned sales people that set their
own hours. Which of the following best describes the relationship?
A. Hourly group are employees; sales people are independent contractors.
B. Both are independent contractors
C. Both are employees
D. Hourly group are independent contractors and commission sales people are employees

131. What is the cost to build a structure 60-ft. long, 12-ft. wide, and 6 inches thick if the cost of
material is $5 a cubic foot and labor is $2 per sq. foot?
A. $2,800
B. $3,200
C. $3,240
D. $4,150

132. Professional conduct states that licensee owns his principal fiduciary pnd integrity. If a licensee tells a buyer in writing that if he buys he is assured of making a profit when it is resold, which of the following is true?
A. The contract will be voided
B. Licensee may have his license suspended
C. Licensee would be responsible to return double the commission paid
D. The seller would be liable for the appreciation amount

133. A contract is in escrow and the seller has delivered the deed but dies before the close of
escrow. What legal concept would apply?
A. Interpleader
B. Doctrine of Relation Back
C. Foreclosure of Rights
D. Forcible detainer

134. A broker lists a property for sale but the broker has never advertised, shown the properl
or communicated to the seller in any way. The seller has a right to conclude that the broker:
A. Has a busy schedule
B. Assigned the listing to another broker
C. Found the property overpriced
D. Has breached fiduciary and abandoned the listing

135. Under the old multiple listing service agreement when a broker listed a property for sale the cooperating broker was considered a:
 A. Dual agent
 B. Sub-agent
 C. Implied agent
 D. Actual agent

136. An agent writes a contract on a property but has no written agency relationship with anyone. Later the parties continue to treat the salesperson as their agent. The transaction’s closes and all documents are delivered. This type of agency would most likely be:
A. Expressed
B. Ratified
C. Coupled with an interest
D. Power of attorney

137. What is the name of the 3rd party that will receive a life interest in a property, upon the
death of a life tenant?
A. Fee Simple Tenant
B. Life Tenant
C. Reversion
D. Remainderman

138. Which of the following properties would an appraiser use the reproduction cost approa
A. Commercial building
B. Rental space
C. Garage
D. Historical House

139. A real estate salesperson represents the seller only but could be liable for the buyers
losses if:
A. Obeyed the sellers instructions to withhold material facts
B. Agent presented oral offers to the seller
C. Agent was not present at closing
D. Obeyed sellers instructions not to disclose a possible divorce

140. An apartment complex would be required to keep the common grounds accessible to
the residents. This requirement would be covered by which of the following?
A. Equal Opportunity Act
B. Equal Common Grounds act
C. Federal Fair Housing
D. American with Disabilities Act

141. A new homebuilder has four model homes and one of the models is used as the custom display office. According to the American with Disabilities Act, which of the following statements are true?
A. The models and the display office must be handicapped accessible
B. The models only must be handicapped accessible
C. The display office only must be handicapped accessible
D. Neither the models or the display need to be handicapped accessible

142. An option once exercised is considered
A. unilateral executed
B. bilateral executed
C. unilateral executory
D. bilateral executory

143. Seller of a property has repair work on a home and doesn’t pay the general contractor. The new buyer of the property obtains a new FHA loan which is recorded. The mechanic not being paid by the seller files a mechanic’s lien on the property. Which of the following statements is true?
A. The mechanic’s lien is void.
B. The mechanic’s lien is valid and has priority over the FHA loan.
C. The mechanic’s lien is valid but is subordinate to the FHA loan.
D. The seller must pay the mechanic’s lien.

144. The buyer of a lot located within a subdivision may rescind the sale if the lot does not have which of the following:
A. permanent ingress and egress
B. 100 year water supply
C. warranty deed
D. improvements that are paid for

145. If a listing contract contains the clause "time is of the essence" what must the agent do when an offer is received?
A. Deliver to the seller within 24 hours
B. Deliver to the seller within 48 hours
C. Deliver to the seller as soon as possible
D.Deliver to the seller upon request

146. What is not required for a listing contract to be valid?
A. Inception date
B. Termination date
C. Commission rate
D. Parties’ signatures

147. Interest is paid in arrears, the house sells and closes June 18. If the buyer assumes ti
seller’s loan and the monthly payment is due the first of each month, how many days will th~
seller be debited?
A. 17
B. 18
C. 47
D. 48

148. How long does a developer keep a receipt of having given a public report to the buyer?
A. 6 months
B. 12 months
C. 5 years
D. 7 years

149. When a buyer buys under a land contract with 10% down, how long would the forfeiture
period be if the buyer defaulted?
A. 30 days
B. 60 days
C. 90 days
D. 120 days

150. When the note and security instrument are in one document, this is best described a
A. Purchase money mortgage
B. Wraparound
C. Land contract
D. Deed of trust

151.Regarding a trust deed foreclosure, which of the following is true?
A. Debtor receives a notice of sale
B. Debtor notifies trustee of default
C. Trustee notifies beneficiary of default
D. Mortgagor would notify trustee

152. When a loan is sold from one lender to another lender, it is:
A. Novated
B. Assumed
C. Assigned
D. Taken subject to

153. On a settlement sheet, what is usually true:
A. Seller debited for pre-paid insurance
B. Seller credited for interest to date
C. Buyer credited for unpaid taxes
D. Buyer credited for pre-paid insurance

154.On the foreclosure of a Deed of Trust, what notice is given first?
A. Legal Process
B. Constructive
C. Actual
D. Preliminary

155. In the sale of a mortgage document, what is the relationship of the parties?
A. Grantor to Grantee
B. Assignor to Assignee
C. Vendor to Vendee
D. Payor to Payee

156. Which of the following in not considered to be in the secondary market?
A. Foreign Governments
B. FNMA
C. A local bank
D. GNMA

157. Who holds the deed to the property, once a Deed of Trust is sold on the secondary
market?
A. Beneficiary
B. Holder-in-due-course
C. Grantee
D. Trustor

158. In foreclosure of a Deed of Trust, which is the order of notice?
A. Service of process, then actual, then constructive
B. Constructive, then actual
C. Actual, then constructive
D. Legal, then actual, then constructive

159. Notice of foreclosure under a Deed of Trust is given by whom?
A. Trustor
B. Trustee
C. Beneficiary
D. Sheriff

 160. Once originated, under the Deed of Trust, who owns the property?
A. Trustor
B. Trustee
C. Assignee
D. Beneficiary

161. Who pays the fee for recording a Deed of Reconveyance?
A. Beneficiary
B. Trustor
C. Trustee
D. Fiduciary

162. How can a corporation hold title?
A. Community Property
B. Joint Tenancy
C. Tenant in Common
D. In Consortium

163. Regarding a mortgage foreclosure, if the certificate of sale holder files for abandonment
how much time do they save in the redemption process?
A. 30 days
B. 60 days
C. 5 months
D. 6 months

164. Regarding residential owner occupied property, which of the following would be a
deduction on a Federal Income Tax return:
A. Insurance
B. Principal payments
C. Loan interest
D. Routine maintenance

165. In order to qualify for the $100,000 homestead exemption you may have which of the following?
A. Primary residence
B. Primary residence and vacation home
C. Number of residences does not matter
D. Rental apartment building

166. Husband and wife take title under a method that would guarantee that the title would
pass to either spouse upon death. How did they take title?
A. Tenancy by entireties
B. Joint tenancy
C. Community property
D. Tenancy in common

167. When a wraparound is created who is responsible for the underlying loans?
A. Vendee
B. Vendor
C. Trustee
D. Beneficiary

168. When a homeowner sells their property to a lender but the seller remains in the proper
and receives regular payments from the lender is best defined as:
A. Blanket mortgage
B. Straight mortgage
C. Budget mortgage
D. Reverse annuity

169. If a homeowners association has additional expenses how would they be handled?
A. Each property owner will pay a pro rata share
B. The association will pay the entire expense
C. Each property owner will pay per property value
D. The developer would be obligated to pay the entire fee

170. While a transaction is in escrow a problem develops and the matter is turned over to
court. This would be considered:
A. Litigation
B. Interpleader
C. Mediation
D. Mutual assent

171. While a transaction is in escrow the listing broker receives another offer on the same property. What should the broker do?
A. Nothing, the property is already sold
B. If the broker informed the seller of the new offer it would breach his fiduciary
C. Present the second offer only if it is a higher price
D. Broker would be obligated to present the second offer to the seller unless the broker as written instructions to the contrary

172. Which of the following would indicate that an apartment complex has been a senior
citizen complex in the past?
A. Social security survey
B. All residents receive social security checks
C. How they were priced in the past
D. Past newspaper ads to see how they advertised

173. A complex meets the 62 year age requirement and the housing for old person exemptio:
A resident has a grandchild that would like to move in to the complex. What is the status of
the grandchild?
A. The grandchild would be allowed to remain
B. The grandchild would not be allowed to stay due to the 62 year old exemption
C. The grandchild would be allowed to stay as long as 80% of all residents were 55 years older

174. Which of the following is true regarding grandlathered water rights?
A. They run with the land
B. Are sold separate from the land
C. May be sold separate if older than ten years
D. Will be canceled when the land is sold

175.  salesperson shows three houses to a potential buyer and later says, “This is the best deal
you can get, I’d take it if I were you.” What type of agency was most likely created?
A. Expressed
B. Implied
C. Exclusive
D. Exclusive Agency

176. When a salesperson and broker are in court to setfie a dispute this would most likely b
called:
A. Mediation
B. Arbitration
C. Litigation
D. Interpleader

177. What is the fine for the first violation of the Federal Fair Housing laws?
 A. $5,000
 B. $10,000
 C. $15,000
 D. $2,000

 178.What can you place in an ad if a loan is assumable?
A. Assumable at 8%
B. Monthly payments $300
C. Low monthly payments
D. PITI $300 for 20 years

179. In a settlement, which of the following statements is USUALLY correct?
A. The buyer is credited for interest to date on a new loan..
B. The seller is charged for the prepaid insurance premium.
C. The buyer is credited for unpaid property taxes.
D. The seller is charged for existing impound funds.
 
180. What is the recission time when a party purchases a time share?
A. 3days
B. 7days
C. 6 months
D. No recission exists
 
181. When a person buys a time share what type of ownership exists?
A. Leasehold
B. Interval
C. Fee conditional
D. Fee determinable

182. When a counter offer is made, which of the following is true?
A. Buyer would initial the changes
B. Seller would initial the changes
C. Buyer and Seller would initial the changes
D. Buyer, Seller and Agent would initial the changes

183. (B-i) A person sells a property for $100,000 with $25,000 down. The entire agreement is ora] and after a few months of payments the buyer wishes to cancel the contract due to the fact it was oral. Which of the following listed below is true?
A. The contract is unenforceable
B. The contract is binding due to the buyers actions
C. The buyer may rescind the contract and have the down payment returned
D. The seller may rescind the contract and retain the buyers payments
 
184. Which of the parties below would hold “naked title” in a deed of trust?
A. Trustee
B. Trustor
C. Beneficiary
D. Mortgagee
 
185. (A-i) An owner sells a property on which a farmer lives and works, as a tenant. When the
property is sold, who gets the crops?
A. The seller
B. The buyer
C. The farmer
D. Noone

186. (A-9) A buyer buys a leasehold interest in an apartment building. This interest is most likel3
A. Stock in a co-op
B. A partnership interest
C. Fee interest
D. Patio home ownership
 
187. Which of the following is NOT synonymous?
A. Mortgagor / debtor
B. Mortgagee / creditor
C. Lessee / landlord
D. Lessee / sublessor

188. An example of functional depreciation is:
A. Outdated interior
B. Exterior deterioration
C. A factory in the area of a residential home
D. Wear and tear

189. What does an appraiser look for first?
A. Square footage
B. Age
C. Floor plans
D. Highest and best use of the land

190. A buyer and seller enter into a contract and the buyer’s lender has already approved the loan. Then the buyer and seller mutually agree to cancel. Which is true?
A. The buyer will automatically receive all of their money as a refund
B. The seller will keep all the earnest money
C. The broker can sue for commission
D. The broker cannot sue for commission
 
191.Which of the following statements in an ad require a full explanation?
A. “Low down payment”
B. 8.25 % A.P.R.
C. 30 year financing available
D. Only $5,000 down / seller will carry balance

192. Which of the following is NOT a duty of a property manager to the owner?
A. Maintain current rent comps
B. Maintain current sales comps
C. Determine the vacancy rate in the area
D. Maintain records of expenses for 5 years

193. Which is the best example of leverage?
A. Pay all cash
B. A VA loan 0% down
C. An FHA loan with 4.5% down
D. A conventional loan with 10% down and PMI

194. When does title NOT convey?
A. When the escrow agent dies after the deed is recorded
B. When the seller dies after the deed is recorded
C. When the deed is signed and notarized
D. When the buyer dies after the deed is recorded

195. How are the rights of ownership under a land contract transferred to a new buyer?
A. Assignment
B. Subordination
C. Subrogation
D. Assumption

196. Which of the following would trigger the alienation clause?
A. Death of mortgagor
B. Death of mortgagee
C. Sale of the property
D. Lease of the property

197. Which type of listing concerns itself least about mentioning the commission rate?
A. Net listing
B. Exclusive right to sell listing
C. Exclusive agency listing
D. Open listing

198. A broker lists a property with provisions of subagency. Another broker accepts the teni
of the listing broker’s offer to cooperate. The co-operating broker is acting as:
A. Agent to the buyer
B. Agent to the seller
C. Subagent to the seller
D. Not an agent of either party
 
199. What is the difference between an option and a purchase contract?
A. Optionor can cancel the contract
B. Option does not have to be consummated
C. Option is a bilateral agreement
D. Option is binding on the optionee

200. An assignment of rents clause would most likely benefit which of the parties?
A. Trustor
B. Trustee
C. Beneficiary
D. Mortgagor

201. A non-disturbance clause would most likely benefit which of the following parties?
A. Lessor
B. Lessee
C. Vendor
D. Trustee

202. Who would not write a purchase oontract?
A. Escrow officer
B. Attorney
C. For sale by owner
D. Business broker
 
203. When is a satisfaction piece used?
A.. When a loan is assumed
B. When a loan is paid in full
C. When a trus. gives foreclosure notice
D. When a loan is being wrapped

204. Who benefits least from rent control?
A. Tenant
B. Landlord
C. Trustee
D. Nominee

205. 1866 Civil Rights Act prohibits discrimination by:
A. Race
B. Race, religion
C. Race, religion, sex
D.  Religion, sex, national origin

 206. Who signs a deed of conveyance?
A. Vendee
B. Grantor
C. Beneficiary
D. Trustee

207. Who signs a deed of re-conveyance?
A. Vendee
B. Grantor
C. Beneficiary
D. Trustee

208. Which of the following is the weakest type of will?
A. Formal
B. Holographic
C. Nuncupative
D. Codicil