RE 2
The owner of a house wants to fence the yard for his new terrior (dog). When the fence is erected, the fencing materials are converted to real estate by what process:
Annexation.
Immobility.
Indestructibility.
Severance.
If a Norwalk homeowner's insurance policy provides coverage for less than 80 percent of the full replacement cost of the dwelling, then the loss of the residence will be settled for
The lowest repair bid.
The total replacement cost
The market value of the property less the land value.
Either the actual cash value or the prorated repair cost.
Under an existing ordinance no signs that extend more than 3 feet above the highest point of a roof may be placed on any building. An owner wants to erect a 9-foot-high revolving sign on the roof of his store. In order to do this legally, the owner must get a
Nonconforming use permit
Variance.
Court order.
Deed to the air rights.
In a land trust all of the following are true EXCEPT
Public records list all the beneficiaries.
The property can be pledged as security for a loan without recording a mortgage.
The beneficiary is usually the trustor.
The beneficial interest can be transferred by assignment.
The mixing of trust funds with a broker's personal funds is
Permitted in offices with fewer than three agents
Legal in most states
Conversion
Commingling
All the following clauses in a loan agreement enable the lender to demand the entire remaining debt be paid immediately EXCEPT a(an)
Acceleration clause.
Alienation clause.
Due-on-sale clause.
Defeasance clause.
Gina owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser?
An appurtenant easement
A license
An easement by necessity
An easement in gross
A life estate conveys to the life tenant
A legal life estate.
Ownership for life.
A leasehold for life.
A reversionary interest.
A buyer has signed an agreement with a broker to compensate the broker even if the buyer purchases the property from a relative. This is called a (n)
Exclusive buyer agency agreement
Open buyer agency agreement
Invalid agreement
Exclusive-agency buyer agency agreement
All of the following are a form of notice of rights or interests in real property EXCEPT
Inquiry notice
Constructive notice
Delinquency notice
Actual notice
Fannie Mae, Ginnie Mae, and Freddie Mac all
Guarantee existing mortgage loans.
Originate residential mortgage loans.
Insure residential mortgage loans.
Purchase existing mortgage loans.
The details of a closing are always governed by
The wishes of the buyer as expressed orally.
The escrow instructions that both the seller and the buyer sign.
The terms of the properly executed purchase contract.
The wishes of the seller as expressed orally.
Real property can become personal property by
Attachment.
Severance.
Hypothecation.process
Purchase agreement
An example of a kickback that is prohibited by RESPA is
A fee paid by a surveyor to a broker for referring a property to be surveyed.
A fee paid by Broker A to Broker B for referring a buyer to Broker A.
A flower arrangement that a salesperson sends to the buyer as a housewarming gift.
A share of the commission paid by Broker A to her salesperson.
At closing, the listing broker's commission generally appears as a
Credit to the buyer.
Debit to the buyer.
Credit to the seller.
Debit to the seller.
Land is considered to be
A wasting asset.
Immune to the forces of supply and demand.
Subject to personal property rights.
Indestructible.
A Milford broker who represents a seller under an Exclusive-Agency Listing Agreement (EA) receives two offers for the property at the same time, one from one of his salespeople and one from the salesperson of a cooperating broker in New Haven. What should the broker do?
Submit both offers at the same time
Submit the higher offer first
Submit the offer from his salesperson first
Submit the offer from the other salesperson first
The road to John's hunting cabin is windy and long, and the shorter, more direct route, is across Sam's land. John has never seen Sam and hopes to eventually gain an easement by
Condemnation
License
Perscription
Necessity
What is the difference between a general lien and a specific lien?
A specific lien covers real estate, while a general lien covers personal property.
A general lien cannot be enforced in court, while a specific lien can be enforced.
A specific lien is held by one person, while a general lien is held by at least two persons.
A general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property.
Which of the following is not a form of co-ownership?
Ownership in severalty
Tenancy in common
Community property
Tenancy by the entirety
Electromagnetic fields
Are produced only by large electrical appliances.
From high power transmission lines are suspected of causing cancer and other health problems.
Are a major national public health concern.
Have been proven to cause serious health problems in humans and animals.
Which of the following is a voluntary lien?
Real estate tax lien
Mortgage lien
Judgment lien
Estate tax lien
Three years ago Ray Charles, his wife and family moved from the house they had owned for 20 year in Westport Connecticut, but did not sell it. They decided to travel and bought a new home in Greenwich Connecticut to live in. They now sell the house. How much of their capital gain on the house will be taxable?
None of it, if it is less than $500,000
All of it, if it is over $500,000
15 percent, depending on Ray's tax bracket
28 percent, depending on Ray's tax bracket
All of the following liens need to be recorded to be valid EXCEPT
Mechanic's lien
Real estate tax lien
Mortgage lien
Judgment lien
According to Connecticut state law, a "trade fixture" is usually treated as
An easement.
Personalty.
A license.
A fixture.
Jamal, Morton, and Herb are joint tenants in a parcel of land. Herb conveys his interest to his long-time friend Walid. After the conveyance, Jamal and Morton
Become joint tenants with Walid.
Remain joint tenants owning a two-thirds interest.
Continue to be joint tenants with Herb.
Become tenants in common.
Which of the following is the best way to ensure that there are no encroachments and verify the boundaries of a parcel of land?
Find the monuments
Verify the benchmarks
Write a legal description
Get a spot survey
All of the following are duties of a property manager EXCEPT
Complying with legal requirements.
Preparing a budget.
Repairing tenant fixtures.
Renting space to tenants.
Normally a deed will be considered valid even if
The grantor is not a legal entity.
The grantor did not deliver the deed.
It is signed by the attorney-in-fact of the seller.
The grantor is a minor.
The practice of channeling families with children away from other buildings into an apartment building where other families with children reside is
Illegal discrimination
Most practical.
Blockbusting.
Redlining.
Broker Bob (of RealtyPlus) was accused of violating antitrust laws. Of the following, he was most likely accused of
Price fixing.
Not having an equal housing opportunity sign in his office front window.
dealing in unlicensed exchange services.
Undisclosed dual agencies.
The provision in a listing agreement that gives additional authority to the broker and obligates the broker to distribute the listing to other brokers is a(n)
Multiple listing clause.
Joint listing clause.
Open listing clause.
Net listing clause.
All of the following are requirements for acquiring ownership of property by adverse possession EXCEPT
The person in possession must occupy the property openly rather than secretly.
The person in possession must compensate the owner.
Occupancy of the property must be without the owner's consent.
Occupancy must be continuous and over a specified period of time.
Unless some other written agreement has been made, Broker Bob of RealtyPlus will usually receive his brokerage commission when
The transaction is closed.
An offer, procured from a ready, willing, and able buyer, has been accepted by the seller.
The seller lists the property with the broker.
The purchaser takes possession of the property.
Rent would best be defined as
All monies paid by the lessor to the lessee.
The total balance owed under the terms of a lease.
Consideration for the use of real property.
Contractual consideration to a third party.
The owner has a large parcel of land surveyed into lots and streets and files a subdivision plat. Each lot can be legally described by use of which of the following?
Lot and block
Government survey
Street address
Metes and bounds
What is the basic purpose of acknowledgment before a notary public in signing a deed?
To assure that the title is valid
To prove that the property has not been encumbered
To make the deed eligible for recording
To show the genuineness of the grantor's signature
A property owner signed a 90-day listing agreement with a broker. The owner was killed in an accident before the listing expired. Now the listing is
Binding only if the broker can produce offers to purchase the property.
Terminated automatically because of the death of the principal.
Still in effect as the owner's intention was clearly defined.
Binding on the owner's spouse for the remainder of the 90 days.
With a tenancy for years
No notice is required to terminate the lease.
A 30-day notice is required to terminate the lease.
The lessee has a freehold estate.
The term of the lease must be for at least one year.
A bill of sale is used to transfer the ownership of
Appurtenances.
Real property.
Fixtures.
Personal property.
The purchaser of a property in a PUD (planned unit development) will usually NOT receive
A share in the control of the commonly-owned elements.
Title to the land on which the unit is built.
An interest in the unit owners' association.
A direct ownership interest in the common areas.
The Real Estate Settlement Procedures Act states all of the following EXCEPT
A uniform settlement form must be used at loan closings.
A special information booklet with information about settlement costs be given to applicants.
Lenders must provide borrowers with a good-faith estimate of closing costs.
The borrower may cancel the loan transaction within three days after settlement.
All of the following are treated as personal property EXCEPT
Emblements
Fructus naturales
Trade fixtures
Chattels
In parts of the country where there are many lakes and rivers, the rectangular survey system designations will often include
Mean water-line sections.
Meander-line sections.
Fractional sections.
Hyphenated sections.
Restrictive covenants
Can be removed by a court of competent jurisdiction.
Are no longer effective when the title is transferred.
Apply to and bind successive owners of the property.
Apply only until the developer has conveyed the title.
A tax lien on the property can hinder the sale of a property because it is
An encumbrance
A monetary charge that the purchaser must satisfy
An appurtenance that does not affect the title
An encroachment
Most homeowner's insurance policies contain which of the following clauses?
A co-ownership clause
A coinsurance clause
A property devaluation clause
A property improvement clause
A standard rectangular survey system section contains
160 acres.
36 townships.
640 acres.
160 government lots.
Victor and Norman are co-owners in fee simple of a small office building. Norman dies intestate and leaves nothing to be distributed to his heirs. Victor is neither related to Norman nor his creditor. Which of the following would explain why Victor acquired Norman's interest?
Foreclosure
Reversionary rights
Adverse possession
Joint tenancy
Broker Smith is helping a buyer and seller fill out a sales contract, but is not representing either party. Broker Smith is a(n)
Designated broker
Transactional broker
Unlicensed broker
Traditional broker
CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites,
Make no provision for recovering Superfund expenses incurred in cleanup operations.
Impose strict, joint and several, and retroactive liability on potentially responsible parties.
Release from liability owners of contaminated property who did not actually cause the contamination.
Exempt from responsibility sites that contaminate neighboring properties.
Taxes levied on a property owner to pay for installation of sidewalks or sewers are called
General property taxes.
Ad valorem taxes.
Special assessments.
Special excise taxes.
Detailed information about the age, education, behavior, and other characteristics of members of a population group is called
Family lifestyles.
Population.
Households
Demographics.
An option
Binds the optionor for a specified time.
Makes the seller liable for a commission
Gives the optionee an easement on the property.
Requires the optionee to complete the purchase.
All of the following are types of listing contracts EXCEPT?
Exclusive-agency
MLS
Open
Exclusive-right-to-sell
All of the following affect how quickly the forces of supply and demand work EXCEPT
Degree of standardization of the product's price
Degree of standardization of the product
Mobility of the parties to the transaction
Mobility of the product (not mobility of parties)
When compared with a 30-year payment period, taking out a loan with a 20-year payment period would result in
Higher monthly payments.
Slower equity buildup.
Lower monthly payments.
Greater impound requirements.
The type of maintenance that is most often neglected is
Deferred
Routine.
Preventive.
Corrective.
Which of the following best describes a voidable contract?
A contract that has been accepted but the acceptance has not been communicated to the offeror
A contract that has no legal effect and never had any
An oral contract with no witnesses to the agreement
A contract that may be either enforced or declared void by one of the parties
The phrase "bundle of legal rights" is properly included in
A legal description.
Leases for less than one year.
Real estate transactions.
The definition of real property.
General real estate taxes are also known as
General, voluntary liens
Ad valorem taxes
Special assessments
Appropriation funds
Generally, chattels can be distinguished from real property by its
Cost.
Greater variety.
Multiplicity of use.
Mobility.
Which of the following is a lien on real estate?
A restrictive covenant
An easement
An encroachment
A recorded mortgage
The recordation of a warranty deed
Provides defense against adverse possession.
Prevents claims of parties in possession.
Gives actual notice of the grantee's rights
Gives constructive notice of an individual's interest
When Broker Bob was told by his principal not to advertise her property in a certain newspaper, which was out of the area, Broker Bob complied because he
Was NOT intending to advertise the property at all.
Had never advertised in that newspaper anyway.
Is allowed to advertise only in local newspapers.
Must obey the lawful instructions of his principal.
Special assessments initiated by a public agency
Statutory liens.
Equitable liens.
General liens.
Voluntary liens.
All of the following are types of Buyer Agency Agreements EXCEPT
A net buyer agency agreement.
An exclusive buyer agency agreement.
An exclusive agency buyer agency agreement.
An open buyer agency agreement.
Rights or privileges which are connected or included with real property, are
Restricted to air and water rights
Improvements
Not conveyed with the real estate
Appurtenances
A bilateral contract is one in which
A restriction is placed in the contract by one party to limit the performance by the other.
Only one of the parties is obligated to act.
The promise of one party is given in exchange for the promise of the other party.
Something is to be done by one party only.
In order for a contract to be valid, the offeree must accept the offer before
The close of the 10th business day following the offer.
The offeror makes a similar offer to a third party.
The offer expires.
The payment of any money.
A home with its kitchen next to the master bedroom would be considered
Economically obsolete
Diminished.
Physically obsolete.
Functionally obsolete.
Tenancy with survivorship means
The tenant's heirs are survivors
This is not a legal tenancy.
The tenancy interest will pass to the surviving tenants upon the death of one.
The tenancy interest will be inherited.
Mrs. Robinson has owned her house for over 50 years. It has fallen into disrepair, but because she lives on a fixed income, she does not have the money to make the needed repairs. She has a considerable amount of equity in the house. What type of loan best suits her needs?
A blanket loan
An open-ended loan
A home equity loan
A reverse annuity mortgage
The uniqueness (not immobility or indescructability) of land and its inability to be substituted is known as
Scarcity
Nonheterogenity
Permanence of investment
Nonhomogenity
Steve's has been making periodic payments of principal and interest on a loan, but the final payment will be larger than the others. This is a (n)
Fully amortized loan
Balloon payment loan
straight loan.
FHA loan
All of the following should be a consideration in selecting a tenant for the property except
Compatibility of the tenant's business with those of other tenants
Size of the available space relative to the tenant's requirements
Ethnic background of the tenant and his or her employees
Tenant's ability to make the rental payments
The Real Estate Settlement Procedures Act (RESPA) provides that
Real estate syndicates must comply with the disclosures required by "blue sky" laws.
All real estate purchasers must receive their closing statements.
Real estate advertisements must include the annual percentage rate, including all charges.
The borrower must be given an estimate of the closing costs before the time of the closing.
A common feature of an adjustable rate mortgage (ARM) is
Automatic conversion to a fixed-rate loan
The interest rate is fixed for a maximum of five years
There is negative amortization if rates decrease
A rate cap on the amount the rate may increase
Maria leases store space to Spiros for a Greek Restaurant, and Spiros installs his ovens, booths, counters, and other equipment. When would these items become real property?
If Spiros does not remove them by lease expiration date.
After they are installed
After Spiros defaults on his rental payments
After the lease takes effect
The method of describing land that uses degrees, feet, and monuments is known as the
Metes-and-bounds system.
Lot-and-block system.
Rectangular-survey system.
Angular system.
A condominium rule prohibits pets. Arlis, a prospective buyer with a physical disability, relies on an animal to assist him. Which of the following is CORRECT?
This restriction is unenforceable only if the animal is used to assist people with visual impairments.
The condominium can waive the enforcement of the covenant only if there are suitable accommodations in the complex for an animal.
A condominium has the right to establish such a private restriction if it chooses.
This restriction is unenforceable when a person uses an animal for disability-related assistance in any way.
When a tenant holds possession of a landlord's property without a definite lease term but with the consent of the landlord, this is called
Trespass.
Tenancy in common.
Tenancy at will.
Tenancy at sufferance.
Carbon monoxide is not
A natural result of combustion.
A result of incomplete combustion.
Easy to detect
Quickly absorbed in the body.
A homestead exemption protects against judgments
That result from foreclosure of a mortgage.
That result from the costs of improvements.
That result from unpaid taxes.
Of unsecured creditors.
The property manager's chief concern should be that
The property is managed to achieve the highest overall rate of return possible on the owner's investment.
The property exhibits the proper amount of the owner's pride of ownership.
The property is seldom vacant because it is consistently rented at the lowest possible rents.
The property manager's time is maximized in his or her management of the property.
All of the following would affect supply EXCEPT
Construction costs
The labor force
Government controls
Population
Homeowners may deduct all of the following expenses when preparing their income tax return EXCEPT
Mortgage interest on a first home.
Real estate taxes.
Mortgage interest on a third home.
Mortgage interest on a second home.
When a tenant sublets all or any part of the premises rented under a written lease,
The original lease is automatically canceled and the sublessee takes possession of the property on a month to month basis.
The tenant assigns all rights, title, and interests in the rented property to the new lessee.
The original lease is unaffected unless it contains a provision that prohibits such subletting.
The sublessee becomes primarily responsible to the landlord for the payment of rent and maintenance of the property.
A broker has an exclusive-right-to-sell listing on a building. The owner is out of town when the broker gets an offer from a buyer to purchase the building providing the seller agrees to take a purchase money mortgage. The buyer must have a commitment from the seller before the seller is scheduled to return to the city. Under these circumstances the
The buyer is obligated to keep the offer open until the seller returns.
Broker may enter into a binding agreement on behalf of the seller.
The broker must obtain the signature of the seller to effect a contract.
Broker may collect a commission even if the transaction falls through because of the seller's absence from the city.
A lease that will terminate within one year of its inception
Must be in writing.
May be oral.
Violates the provisions of the statute of frauds.
Is invalid.
A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called a(n)
Certificate of title.
Abstract of title.
Title insurance policy.
Chain of title.
A wooded area with biking and hiking trails is situated between old cotton mills and a housing development. This area is considered a
Variance to the existing zoning
Buffer zone
Designated park required under federal guidelines
Utility easement
Under an exclusive buyer agency agreement, the real estate broker would be entitled to a commission EXCEPT
If the property is a FSBO.
If the buyer finds a suitable property without the broker.
If the buyer cancels the agreement of sale.
If the broker sells the buyer a listing from another firm.
A real estate security is defined as
A. Any investment in residential real estate.
b. Any investment in commercial real estate.
c. A share of an income-producing investment that has real estate as its underlying asset.
Connecticut’s fair housing laws apply to what type of real estate?
A. Residential
B. Multi-family
C. Commercial
D. Residential and commercial
All of the following would be examples of illegal discrimination EXCEPT
A. Refusing to sell a dwelling to a person that was born in Iraq.
b. Refusing to rent a dwelling to a homosexual.
c. Refusing to rent to the mother of an autistic child.
D. Refusing to rent to a person who does not make sufficient income.
A landlord does not allow pets in an apartment building he owns but does not live in. He is unwilling to rent to a woman because she uses a service dog for a post- traumatic stress disorder. Is the landlord violating fair housing law?
A. No, he is not discriminating based on the renter’s disability
b. No, a landlord has the right to refuse to rent to people with pets
C. Yes, discrimination against a person with a disability includes refusing to make reasonable accommodations in policies
D. Yes, a landlord cannot have an across-the-board no-pets policy
A landlord does not allow pets in the unit he rents in his two-family house. He is unwilling to rent to a woman because she uses a service dog for a post-traumatic stress disorder. Is the landlord violating fair housing law?
A. No, he is not discriminating based on the renter’s disability
B. No, a landlord living in the other unit of a two-family house has the right to discriminate and refuse to make reasonable accommodations
c. Yes, discrimination against a person with a disability includes refusing to make reasonable accommodations in policies
D. Yes, a landlord cannot have an across-the-board no-pets policy
An investor in a real estate security owns
A. Title to the real estate.
b. co-ownership title to the real estate.
C. A share of stock in a corporation that owns real estate.
D. An investment share in an entity that either owns the real estate or a loan with real estate as collateral.
Connecticut regulates which two types of real estate securities?
A. Real property securities and real estate syndicate securities
B. Real property securities and real estate investment trusts (REITs)
c. Real property securities and mortgage-backed securities
D. Real estate investment trusts (REITs) and mortgage-backed securities
Real property securities are defined as share in an investment, where the underlying asset(s) in the investment are
A. One parcel of real estate.
B. One or more parcels of real estate.
C. One or more loan notes that use real estate as collateral.
D. A single loan note that uses real estate as collateral, or multiple loans that use real estate in the same or adjoining subdivisions as collateral.
Deed restrictions are created by all of the following EXCEPT
A) Statute
B) General plan of a subdivision
C) Deed
d) Written agreement
If the quarterly interest at 10 1 2 percent is $3,150, the principal amount of the loan is
A) $120,000
b) $90,000.
c) $30,000.
D) $60,000
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