Review4

380. All of the following are used in a real estate exchange, except:
Boot
Balloon payment
Like kind
Mortgage relief

381. Which of the following would not be pertinant in a transfer of property?
A. Building
B. Zoning
C. Easement in Gross
D. Air Rights

382. A property is sold with a quit claim deed. Several years later it was realized that the party signing the deed only had 50% interest. The other 50% owner now appears. Which of the following is true?
A. Buyer should now buy title insurance
B. The 50% owner must be recognized as legitimate
C. The 50% owner has no rights
D. The entire sale is void

383. When a salesperson works for a brokerage company that is incorporated, which of the following is true?
A. The salesperson is the agent of the seller and the corporation is an agent of the salesperson
B. The salesperson is an agent of the corporation and the corporation is an agent of the seller
C. The corporation is a subagent of the seller
D. The corporation and salesperson are considered dual agents

384. According to Reg Z and R.E.S.P.A., which of the following are not prorated in escrow?
A.Property taxes
B.Property insurance
C.Title insurance
D.Impound accounts

385. Which of the following would not be exempt under the Federal Fair Housing Law?
A. A room leased to an individual in a person’s home
B. A church leasing a commercial space
C. A For Sale by Owner selling their own home
D. A For Sale by Owner selling a five plex

386. Which of the following is true when paying an out of state referral fee to a designated broker?
A. The exact dollar fee must be disclosed to all parties
B. The name of the brokerage must be disclosed in writing to all parties prior to close of escrow
C. Buyer and seller must agree in writing before a referral fee can be paid
D. The department of real estate must be notified if an out-of-state broker is paid a referral

387. When a life tenant does more damage to a property beyond the normal expected wear and tear, this would be called:
A. Regression
B. Waste
C. Progression
D. Reversion

388. Which of the following below could sign a property management agreement?
A. Unlicensed staff
B. Licensed sales people with a broker
C. Office manager only
D. Corporate office only

389. A Master Planned Community would best be described as:
A. A community of over 100 residents
B. A long range 25 year plan
C. Two or more platted subdivisions with CC & Rs
D. A community with residential, commercial and industrial mix

390. According to Real Estate Law, an improved lot would be:
A. when a lot with utilities
B. when a law with streets and servers
C. when a lot that has been subdivided
D. when A structure will be built on the lot within two years of contract

391. On a closing statement, which of the following will not be prorated?
A. Prepaid taxes
B. Security deposits
C. Insurance
D. Rents

392. A clause in a lease that would allow adjustments of payments either up or down would be called an escalator clause.
A. an escalator
B. an escape clause.
C. a margin clause.
D. an equity participation clause.

393. In Arizona, what agency is in charge of environmental protection?
A. EPA
B. ADEQ
C. ADWR
D. WQARF

394. Three separate owners of a property want to list the property with a broker. The property is encumbered with two mortgages and ownership is held tenancy in common. Who would be required to sign the listing to be enforceable against the parties?
A. Any one of the owners can bind all partnership.
B. All three owners would be required to sign.
C. Any one owner and the mortgagee may sign and be enforceable.
D. All three owners and the mortgagee would bt required to sign.

395. Regulation Z would disclose
A. mortgage prepayment penalty.
B. escrow fees.
C. title insurance fees.
D. loan origination fees and points.

396. A person buying real estate from an executor won't get a general warranty deed because
A. the executor does not own the property and is carrying out the instructions of a living trust.
B. a warranty deed can only be given by the seller.
C. a court appointed administrator would not want the liability.
D. an executor will want to limit the estates liability

397. If a broker does not notify the real estate department of an office closing, which of the following is true?
A. Administrative fee of $500 is assessed.
B. Administrative fine of $1,000 is assessed.
C. License is suspended for one year.
D. Payment will be ordered from the recovery fund.

398. Lot reservations cannot be taken on which of the following?
A. improved subdivided lots
B. unimproved subdivided lots
C. time share
D. unsubdivided lots

399. A property manager who collects rents for an owner must have which of the following?
A. trust account
B. general account
C. interest bearing general account
D. personal checking account

400. When a loan is assumed, which of the following is true?
A. New buyer is primarily responsible if a default occurs.
B. Original maker of the loan is primarily responsible in case of default.
C. Neither is responsible if the buyer qualified for the loan.
D. The new buyer would have no responsibility if the loan is in default.

401. A tenant moved out of an apartment due to fire damage in the complex. This would be an example of:
A. actual eviction.
B. distraint clause.
C. constructive eviction.
D. non-disturbance.

402. When a sale and leaseback occurs:
A. the seller is the landlord.
B. the seller is the lessor.
C. the buyer is the landlord.
D. the buyer is the lessee.

403. All of the following can happen as a result of an inheritance except:
A. receiving a devise
B. receiving a bequest
C. receiving the property by escheat
D. receiving a legacy by testate conveyance

404. All of the following are required for a ranch office except
A. sign at entrance stating “branch office”
B. broker to supervise all activity
C. at least two salespeople
D. employed brokers name on sign

405. When a person pays the entire principal balance at the end of a loan period, the loan would be:
A. reverse annuity.
B. amortized.
C. blanket.
D. term.

406. Time share units in Hawaii are being offered for sale or lease in Arizona. The developer must do all of the following except
A. secure an Arizona Public Report
B. secure a special use permit
C. pay expenses of department to go and inspect the time share project
D. prove that the units have been approved by the state of Hawaii

407. Rank the order of liens highest to lowest. Property taxes, current year; special assessments; IRS lien February of the current year; mortgage lien October of the previous year.
A. property taxes, assessments, IRS, mortgage lien
B. property taxes, assessments, mortgage lien, IRS
C. IRS, property taxes, assessments, mortgage lien
D. property taxes, IRS, assessments, mortgage lien

408. Which of the following listed below would be the duty of a listing broker?
A. Determine the form in which title is to be taken.
B. Appraise the property.
C. Make a list of personal property to be included in the contract.
D. Obtain a valuation of the furniture in the home.

409. Regarding a commercial closing statement, which of the following is true?
A. Buyer is debited for rents.
B. Seller is credited for security deposits.
C. Seller is debited for property tax.
D. Buyer is credited for property insurance.

410. The highest property tax rate would apply to
A. a(n) single family residential.
B. vacant lot.
C. apartment building.
D. shopping center.

411. The loss of nearby fire service in a rural area would be
A. considered functional depreciation.
B. economic depreciation.
C. physical depreciation.
D. economic life depreciation.

412. A salesperson to a broker is what type of agency relationship?
A. general
B. special
C. exclusive
D. implied

413. A husband owned property that was inherited from his uncle before marriage. After marriage, the husband sells the property. Which of the following is true?
A. Signature of the wife is not required.
B. Signature of wife is required because the property is owned by the community.
C. The wife must sign a disclaimer deed before the husband can sell.
D. The husband cannot sell without the wife’s permission.

414. A deed is in escrow and signed by the grantor who dies before close of escrow. What is the status of the deed?
A. void
B. unenforceable
C. valid
D. intestate

415. When loans are sold under a HUD program that relate to affordable housing, the purchaser of the loans would most likely be
A. GNMA
B. FDIC
C. FSLIC
D. MCIC

416. RESPA would cover which of the following loans?
A. commercial
B. 1 - 4 plex
C. residential apartment building
D. vacant industrial land

417. A property owner has an agreement with a property manager. The broker-manager license expires. Which of the following is true?
A. The agreement is valid for a one year grace period.
B. The agreement is suspended until the license is renewed.
C. The agreement will terminate when the broker’s license expires.
D. The agreement will continue until the stated expiration date.

418. A broker goes on a cruise for ten days. Who can be left in charge?
A. any unlicensed employee
B. any real estate licensee employed by the broker
C. only a real estate salesperson
D. any corporate offices

419. A covenant against encumbrances insures against all of the following except
A. zoning to restrict the use of property
B. loans on the property
C. encumbrances and encroachments
D. recorded easements

420. A makes an offer to B. B counters and sends the offer back to A. B dies prior to A accepting the contract. What is A’s position regarding the contract?
A. contract is valid
B. contract is unenforceable
C. binding on B’s heirs
D. the courts must decide the validity

421. What is the final step in the process of conveying a deed?
A. signing the deed
B. signing and recording
C. notarizing and recording
D. signing and delivering

422. The basis of a personal residence is affected by which of the following:
A. maintenance
B. patio addition
C. loan pay off
D. interest deductions

423. When a residential home owner is calculating their income tax obligation, what would be considered a tax deduction?
A. property insurance
B. tax depreciation
C. loan interest payments
D. loan principal and interest payments

424. Of the following listed below, what would not be pertinant to the real property?
A. structures
B. trees
C. trade fixtures
D. under ground rights

425. A handicapped person is leasing a house that requires modification. Which of the following is true about the modifications?
A. the lessor my forbid handicapped modifications
B. the lessor can require the lessee to reasonably restore the property at the end of the lease
C. the lessor must pay for the modifications
D. the lessor can increase the rent due to the risk of the handicapped person

426. When a mortgage banker borrows on existing loans held by the banker this is called:
A. discounting
B. estoppel
C. wraparound lending
D. warehousing

427. When a commercial building is sold on a sale with a lease back, what would the buyer of the building be the least interested in?
A. type of building
B. amount of depreciation taken by the seller
C. rent values
D. type of tenant and lease terms

428. By definition how does a mortgage banker differ from a mortgage broker?
A. a mortgage banker can service loans after the closing
B. a mortgage broker may not charge a fee for the loans
C. a mortgage broker uses their own personal funds
D. a mortgage banker can only work in the state the bank is located

429. When a buyer breaches a contract and the seller has the right to sue in order to be “made whole” this is best described as:
A. liquidated damages
B. specific damages
C. specific performance
D. hold harmless clause

430. Under what form of ownership would each property owner receive a separate property tax bill?
A. timeshare
B. co-operative
C. condominium
D. general partnership

431. When a loan is sold and discounted which of the parties below discounts the loan:
A. trustee
B. trustor
C.mortgagee
D. grantee

432. All of the following would affect the basis of a property except:
A. purchase price
B.closing costs
C. depreciation
D. interest paid on the loan

433. When calculating net operating income you would take into account all of the following items except:
A. property taxes
B. loss of credit
C. utilities
D. CAP rate

434. If a party is granted a property upon the condition that a certain use continue in the future this would be called?
A. fee simple absolute
B. tenancy for period to period
C. life estate
D. defeasible fee

435. If a seller conveys property with the idea of completing a tax deferred exchange and designates the exchange property 25 days after close of escrow which of the following is true:
A. if the seller waits beyond 25 days the property does not have to be like for like
B. the seller has 45 days to identify the exchange property at close of escrow
C. the seller must identify the exchange property at C.O.E.
D. the first sale is fully taxable

436. To have a qualified tax deferred exchange which of the following would be required:
A. the exchange need to occur no later than 10 days after close of escrow
B. properties must not differ in value
C. properties are held for investment
D. boot is required to show valid consideration

437. When real property is conveyed all of the following would be pertinant except:
A. deed restrictions
B. existing leases
C. licenses
D. easements

438. When a person sells an income producing property and the taxable gain is being calculated which of the following would the seller be most interested in:
A. debt service
B. capital improvements
C. repair and maintenance
D. property taxes paid

439. Which of the following concepts would apply to both FHA and VA lending:
A. Interest rate set by law
B. or more clause
C. certificate of eligibility
D. mortgage insurance premiums

440. If you were a passive investor in a limited partnership you would be entitled to all of the following information and rights except:
A. K-1 tax reporting form
B. management and control
C. annual accounting
D. sharing in partnership losses

441. In using the cost approach of appraisal all of the following would be considered in determining the replacement cost except:
A. comparative survey
B. replacement cost
C. depreciation
D. CAP rate for that type of investment

442. When a borrower is qualifying for a VA guaranteed loan which of the following would not apply:
A. funding fee
B. certificate of reasonable value
C. private mortgage insurance
D. certificate of eligibility

443. A tenant enters into an option to buy the rental property at a future date. When does the option become binding on both the lessor and lessee:
A. when the option to buy is exercised by the optionee
B. when the option is signed, money is given, and option recorded
C. when the option is signed
D. when the option is recorded

444. When a party has an interest in a property which of the following would not be considered Fee Simple Absolute Interest:
A. community property ownership
B. sole and separate ownership
C. lessor with a reversion right
D. lessee with a long term lease

445. If a subordination clause is in a mortgage or deed of trust this would benefit which of the following parties:
A. trustee / mortgagee
B. beneficiary / mortgagor
C. trustor / mortgagor
D. trustee / mortagor

446. An appraiser is appraising a commercial property and states that the project has excess, which of the following would be true:
A. the land would produce income in excess of what is needed
B. the land adds little value to the project
C. the land can be used for the improvements
D. the land has a negative impact on the value of the project

447. All of the following would be considered constructive notice except:
A. recordation
B. advertising
C. buyer in possession
D. public posting

448. (A.5) The buyer has an investment that has a feature of “a pass - through certificate”, this investment is most likely a:
A. real estate investment trust
B. limited liability company
C. Ginnie Mae security
D. F.W.M.A stock investment

449. RESPA would provide for all of the following except:
A. good faith estimate
B. HUD booklet
C. a limit on loan points
D. restriction on kickbacks

450. If you are a passive investor with no voice in management this would best describe:
A. planned area development
B. real estate investment trust
C. general partnership
D. independent contractor

451. When a deed in lieu of foreclosure is given to a lender which of the following is true:
A.redemption rights remain
B.subsequent liens are paid off
C. time and cost are less
D. the borrower would still be liable for the loan in foreclosure

452.    When a lender requires an impound account, what is the maximum tax reserves a lender may demand according to RESPA:
A.    9 months
B.    6 months
C.    3 months
D.    2 months

453. Which of the following transactions would not be subject to regulation Z?
A. home purchase
B. home equity loans
C. pool loan
D. business loan

454. Which of the following would not apply to the income approach of appraising:
A. property depreciation
B. vacancy and loss of credit
C. scheduled gross income
D. risk

455. When land is purchased interstate, how long would a buyer have to rescind under the Federal Interstate Land Full Disclosure Act?
A. 3 days after signing the contract
B. until the property is inspected by the buyer
C. within 7 days of receiving a property report
D. w~thin 6 months of bought sight unseen

456. If interest rates rise, what effect would this have on commercial property with a long term fixed rate lease?
A. the CAP rate would decrease
B. property value would increase
C. net operating income would decrease
D. property value would decrease

457. Which of the following would not be a use of police power:
A. state laws
B. environmental regulations
C. condemnation of a property
D. licensing of real estate agents

458. The Equal Credit Opportunity Act, the borrower would have all of the following rights except:
A. right to know why a loan was denied
B. poor credit report in the past can not be a reason for denial
C. protection against questions regarding marital status, age, and pregnancy
D. the right to use income from public assistance
.
.459. Which of the following listed below would be the best example of a progressive form of taxation:
A. installment sale
B. income tax
C. property tax
D. sales tax

460. A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered?
A. equity
B. boot
C. tax shelter
D. leverage

461. Which of the following employers would be required to conform to the Americans with Disabilities Act:
A. each and every employer
B. those with three or more employees
C. those with twelve or more employees
D. those with fifteen or more employees

462. What are considered to be the four elements of value in appraisal?
A. land, capital, profit, labor
B. location, profit, desire, highest and best use
C. location, situs, labor, profit
D. demand, scarcity, utility, transferability

463. When a corporation owns property as tenants in common with other corporations how are they most likely taxed?
A. in severalty
B. pro rata share
C. joint and several
D. equal percentages

464. Wetlands would come under which of the following controls?
A. police power
B. deed restrictions
C. zoning
D. eminent domain

465. Which of the following would have a percentage lease?
A. municipality
B. utility company
C. public library
D. art gallery

466. A sole owner of property dies with no will, the property would transfer
A. Testate succession
B. intestate succession
C. spouse automatically
D. 1/2 heirs 1/2 spouse

467. What is not part of a plat map description:
A. easements
B. subdivision name
C. lot and block
D. monuments

468. Which of the following would a broker not give in a normal real estate transaction:
A. closing costs
B. abstract of title and opinion
C. fiduciary services
D. pro forma

469. In order for a junior lien to have priority, the primary lien holder would sign which of the following:
A. subrogation
B. defeasement
C. subordination
D. habendum

470. What is deductible on a federal tax return?:
A. passive solar energy items
B. principal loan payments
C. loss on a personal residence
D. depreciation on income property

471. A seller would need a financial settlement statement to show all of the following except:
A. property taxes
B. property insurance
C. annual gross income
D. assessment prorations

472. What is not part of a tax deferred exchange:
A. Boot
B. Mortgage relief
C. Like kind
D. highest and best use

473. What finance instrument would give the lender/seller the fastest recourse in case of a/an
A. deed of trust
B. agreement for sale
C. mortgage
D. sale and leaseback

474. Who signs the estoppel certificate
A. borrower / lessee
B. lender / lessor
C. trustee / grantee
D. trustee / lessee

475. How long does the trustee retain a copy of the deed of reconveyance
A. 2 years
B. 5years
C. 7 years
D. 10 years

476 B buys land from W using a deed of trust as security for the carryback. B makes all the payments except the fmal three and is now in default. W does nothing and decides not to foreclose until later by doing this W is exercising his right of:
A. alienation
B. acceleration
C. forbearance
D. redemption

477. When an exchange of real property takes place which of the following items listed below would trigger a taxable event:
A. trading commercial property for an apartment building
B. assuming a loan of less value
C. using a delayed exchange
D. like for like exchange with no boot

478. When a carryback is created between a buyer and seller IRS wants the interest rate to be market rate. If the interest is well below market rates IRS would apply which of the following:
A. Prime rate plus 2%
B. LIBOR rate
C. usury rate
D. Imputed interest

479. When an escrow is closed by an escrow company, attorney, or broker which of the following forms must be filed with the IRS:
A. 1099 INT
B. K-1
C. 1099 S
D. W-2

480. Which of the transactions would not be covered by Regulation Z?
A. loans with twelve installments
B. home loan in excess of $207,000
C. non-real estate loans up to $25,000
D. seller carryback financing

481. When a lender gives a good faith estimate as prescribed by RESPA, which of the following agencies oversee the compliance?
A. GNMA
B. FTC
C. FNMA
D. HUD

482. Of all the insurance policies listed below, the most typical insurance carried by a broler for the sales people would be?
A. workman’s comp
B. error and omissions
C. health insurance
D. Medicare coverage

483. When a community wants to expand its employment base, which of the following would produce the greatest amount of jobs in the area?
A. retail store
B. golf course
C. automobile dealership
D. military base

484.    An office building has been damaged by a flood which of the following appraisal approaches would most likely be used to establish replacement costs?
A. market
B. cost
C.    income
D.    highest and best use

485. Regarding an FHA insured loan which of the following statements are true?
A. FHA has no loan limit
B. FHA will allow a balloon payment
C. FHA loans before December 15, 1989 are fully assumable
D. FHA will loan on a 5-plex that is owner occupied

486. A buyers broker has a client interested in buying a parcel of land that is presently listed with another brokerage. The buyers broker has a duty to:
A. obtain the lowest price for the buyer
B. obtain the highest price for the seller
C. negotiate the best deal for both parties
D. obtain the best deal for the brokerage company

487. A deed does not guarantee against which of the following?
A. quiet enjoyment
B. zoning laws
C. liens and encumbrances
D. property description

488. Why is the APR higher than the advertised interest rate?
A. APR includes all other costs to obtain the loan
B. APR includes all costs including real estate commission
C. APR includes all pre-payment penalties
D. APR would be higher based on the lenders cost of funds.

489. A buyer enters into an agreement that gives him the opportunity to buy but not the obligation. The buyer has entered into a/an
A. sale leaseback
B. co-op
C. lease
D. option

490. When a mortgage is created it must also have which of the following:
A. deed
B. note
C. deed of trust
D. purchase contract

491. A, B, and C own property as tenants in common. A wants to take legal action to divide the property, this action is called:
A. defeasible fee
B. Partition action
C. fee conditional
D. foreclosure

492. A broker encourages people to sell because minorities are moving into
the area, this action would be:
A. steering
B. blockbusting
C. redlining
D. channeling

493. When buyers are taken to a specific area by a real estate agent, because the agent thinks the buyers will be better off, this is called:
A. steering
B. blockbusting
C. redlining
D. urban balance

494. An agreement for sale is best described as:
A. financing document
B. lease with option to buy
C. purchase contract
D. first right of refusal

495. Seller of a property tells a broker he only wants to see full price offers. The broker receives and offer less than the listed price, what should the broker do?
A. present the offer to the seller
B. is not required to present the offer
C. if the broker presents the offer he would violate his fiduciary duty to the seller
D. refuse to write the offer

496. All of the following would apply to a non-judicial foreclosure except
A. constructive notice
B. trustee action
C. redemption
D. reinstatement

497. What form of real estate financing would fall under federal securities laws?
A. FHA
B. Agreement for sale
C. conventional loan under 80%
D. REIT

498. Which of the following clauses would convey?
A. habendum
B. granting
C. estoppel
D. acknowledgment

499. When a loan has a lock in clause it means
A. the loan has a pre-payment penalty
B. the loan can’t be pre-paid
C. the OR more clause would apply
D. the loan would cover land only

500. When an apartment building is turned into condominiums, this would be known as:
A. conversion
B. Vertical property ownership
C. reversion
D. co-operative

501. Which of the following items listed below would be exceptions to the lenders ALTA
A. survey issues
B. zoning
C. boundary lines
D. mechanics liens not yet recorded

502. When land is designated to be in an AMA, which of the following apply?
A. the land is located out of the CAP supply zone
B. overdraft of the underground water supply may be occurring
C. surface water rights have been eliminated
D. irrigation rights have been lost

503. Federal fair housing complaints would be filed with:
A. FNMA
B. HUD
C. GNMA
D. FHA

504. Broker A hires salesperson B who enters into a contract with a buyer and seller and opens escrow. Before the close of escrow broker A’s license is suspended. What is the status of the commission to be paid the salesperson on the opened escrow.
A. the salesperson may not receive a commission
B. the salesperson may receive a commission
C. no commission can be paid until the brokers license is reinstated
D. the seller would not be obligated to pay any commission

505. A seller must approve in writing all items in a listing except:
A. price change
B. broker assigning the listing to another agent
C. extension of expiration date
D. alteration of financial conditions

506. A loan on a property is paid in full but the deed of reconveyance is not recorded. What is the status of the title?
A. cloud remains on the title
B. title is free and clear
C. the lien is released when the release document is signed
D. the lien is released when the release document is notarized

507. When a document is acknowledged it shows which of the following?
A. the document was recorded
B. the document was released
C. the document was drafted
D. the document was signed on your own free will

508. A commercial building is sold in a foreclosure for $100,000 less than the balance due the lender. Which of the following is true?
A. The lender can obtain a deficiency judgment against the borrower
B. Deficiency Judgment cannot be obtained in Arizona
C. A deficiency can only be obtained if the property is on more than 2 1/2 acres
D. A deficiency judgment can only be obtained on residential properties

509. When a buyer obtains a new VA loan who pays for the document preparation fee.
A. Broker
B. Buyer
C. Seller
D. Buyer or Seller

510. When a buyer assumes a loan what is the status of the ALTA policy
A. Paid off
B. Remains in force and effect
C. Buyer must buy a new policy
D. Seller must buy a new policy

511. When a new VA loan is created who pays for the Tax Service Fee?
A. Broker
B. Seller
C. Buyer
D. Seller or Buyer

512. When a Trust Deed is in foreclosure who is responsible for the property taxes?
A. Trustee
B. Trustor
C. Beneficiary
D. Secondary Lender

513. An irrevocable personal right to use a property would be called an easement
A. In Gross
B. Necessity
C. Implied
D. License

514. Who is responsible to deliver the RESPA information~to the buyer?
A. Broker
B. Seller
C. Lender
D. Title and Escrow

515. How long does a licensee have to notify the Department of Real Estate regarding the conviction of a misdemeanor or felony?
A. immediately
B. 5 days
C. 7 days
D. 10 days

516. Who, at closing, signs the HUD - 1 form?
Buyer
Seller
Settlement Agent
Buyer and Seller

517. The income analysis appraisal method would not include:
A. CAP Rate
B. Depreciation
C. Net Income
D. Operating Expenses

518. Which of the following listed below best shows the relationship between an agreement of Sale and a Land contract?
A. Purchase Contract and Financing Device
B. Financing Device and Purchase Contract
C. Financing Device and Financing Device
D. Listing Agreement and Purchase Contract
.
519. A real estate ad must contain which of the following?
A. Broker’s Name
B. Salesperson’s name
C. Broker and Salesperson’s Names
D. Name of Principal

520. Who may sign a commission check paid out of a broker’s trust account?
A. Salesperson
B. Broker
C. Salesperson or Broker
D. Company Bookkeeper

521. What type of listing would give the broker the least protection?
A. Net
B. Exclusive Right to Sell
C. Exclusive Agency
D. Open

522 Rent control would least likely benefit the:
A. Property Owner
B. Tenant
C. Real Estate Broker
D. Local Municipality

523. Which of the following listed below show the best relationship between Testate and Intestate.
A. Will - Administrator
B. No Will - Executor
C. Executor Will
D. Administrator Executor

524. Place the liens in priority highest to lowest:
A. Property Taxes, Assessments, Deed of Trust, IRS.
B. IRS, Property Taxes, Assessments, Deed of Trust.
C. Property Taxes, Assessments, IRS, Deed of Trust.
D. Property Taxes, IRS, Assessments, Deed of Trust.

525. How many salespeople does it take to open a branch office?
A. One
B. Two
C. Three
D. Four

526. Notice of sale in a trust deed foreclosure is given by which of the following parties?
A. Trustor
B. Trustee
C. Beneficiary
D. Mortgage

527. Why is subrogation not a clause in a mortgage?
A. It is used when a mechanics lien is paid off.
B. It is used when a judgment is paid in full.
C. It refers to an unsecured loan.
D. It is a clause, which is primarily used in insurance settlements.

528. A surety bond is most likely used when?
A. A contractor fails to complete a job
B. A person becomes a designated broker
C. A title company issues Title Insurance
D. A power of attorney is given

529. When a person buys a condo how do they hold title to the common ground?
A. Sole and Separate
B. Joint Tenancy
C. Tenancy in Common
D. Community Property

530. Which of the following is true about a handicapped person and alteration to the owner’s property?
A. The owner may refuse the alterations.
B. The owner must pay for the alterations.
C. The handicapped person pays for the alterations but not the removal.
D. The handicapped person pays for the alterations and then the removal.

531. What is the difference between fee simple and non-freehold?
A. Fee simple is freely inheritable, while non-freehold is a lease
B. Fee simple is for a person’s life while non-freehold is freely inheritable
C. Non-freehold has no time limit while freehold has a definite time
D. Non-freehold is for a person’s life while Fee simple is a lease
.
532. What would an appraiser look for when appraising an 1800 sq. ft. house using the market approach?
A. Homes in the same area that are 2500 sq. ft.
B. Homes in a nearby area that are 1800 sq. ft.
C. The cost approach minus depreciation.
D. Homes in the same area that are 2500 sq. ft. plus any vacant lot.

533. A person would qualify for a homestead when?
A. They have lived in the property 3 of the last 5 years
B. Upon taking ownership and moving in
C. Eighteen months after ownership
D. When they have sold other investment properties

534. Husband and wife buy real estate and nothing else is known, how did they take title?
A. Sole and Separate
B. Tenancy In Common
C. Community Property
D. Joint Tenancy

535. When a listing is taken the owner says he wants to net $20,000 upon closing. An offer comes in that will net the owner $15,000, what should the broker do?
A. Present the Offer
B. Not Present the Offer
C. Broker should make a counter offer
D. Broker may accept the offer

536. An estoppel certificate would be used?
A. When a lender sells loans
B. When a loan is paid off
C. When an easement is acquired
D. When an insurance claim has been paid

537. Which of the following would be considered grandfathered water rights?
A. A well that pumps 35 gallons per minute or less.
B. Type I right for non-irrigation
C. Riparian rights
D. Reliction rights

538. Broker does not notify the Real Estate Commissioner that he closed his real estate office. Which of the following is true?
A. The fme is in excess of $1000
B. Brokers License is Terminated
C. Broker must notify the commissioner within 20 days
D. As long as the broker opens a new office in ten days no violation has occurred.

539. When a person buys a time share they would hold title as?
A. Interval Ownership
B. Community Property
C. Tenancy In Common
D. Joint Tenancy

540. A buyer and seller wish to cancel a contract who must sign the cancellation?
A. Buyer and Seller
B. Buyer, Seller and Broker
C. Broker and Title Company
D. Seller and Broker

541. Buyer and seller have an oral contract and the buyer puts down a good faith deposit. After close of escrow the buyer fails to make the final payments what is the status of the deposit monies?
A. Buyer will have deposit returned
B. Seller may keep the deposit
C. Deposit will be turned over to the courts
D. Buyer and seller will split the deposit

542. A gives a contract offer to B, B makes a counter offer back to A that needs A’s initials. A dies before the counter is initialed. What is the status of the contract?
A. No contract exists
B. Contract is binding on the heirs
C. Contract will close escrow
D. Contract exists between A & B

543. A salesperson makes a sale that is to close escrow in 60 days. Two weeks later the broker loses his license. The salesperson takes his license to a new company, the original sale closes - Who pays the commission?
A. The original broker must pay the salesperson directly
B. The original broker must pay the new broker
C. The salesperson does not get paid
D. The salesperson must wait until the original broker has his license reinstated to receive a commission.

544. Which of the agencies listed below guarantees loans?
A. FHA
B. FNMA
C. GNMA
D. FHLMC

545. When two parties are involved in a tax deferred exchange which of the following could be financed?
A. Boot
B. Debt Relief
C. Property Basis
D. Imputed Interest

546. When a payment has been made from the recovery fund against a licensee which of the following is true?
A. The licensee may never obtain anothei real estate license
B. The licensee must pay back the fund plus interest and re-apply for a license.
C. The license must have a court order to apply for a license.
D. Repayment is not required but the person must pass the state exam.

547. Q has moved into a cooperative, which of the following is true?
A.Q owns a limited partnership interest in the building.
B.Q owns the unit fee simple.
C.Q may have to make a larger payment if the other parties do not make their payments.
D.Q may not deduct taxes and insurance on his income taxes because he only pays monthly rent.