RE 3
Which of the following is a lien on real estate ?
Recorded easement
Recorded mortgage
Encroachment
Deed restriction
A sales contract was signed by a minor. Which term describes this contract?
Voidable
Breached
Discharged
Void
A real estate professional receives a check for earnest money from a buyer and deposits the money in the real estate professional's personal interest-bearing checking account over the weekend. This action exposes the real estate professional to a charge of
Commingling
Novation
Subrogation
Accretion
A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years and a final payment of $24,095. This is what type of loan?
Wraparound
Accelerated
Ballon
Variable
If a borrower computed the interest charged for the previous month on a $260,000 loan balance as $1,300, what is the borrower's interest rate to the nearest half percent?
6%
6 1/2%
5%
5 1/2%
A real estate professional signs a contract with a buyer. Under the contract, the real estate professional agrees to help the buyer find a suitable property and to represent the buyer in negotiations with the seller. The buyer may not sign an agreement with any other real estate professional. What kind of agreement has this real estate professional signed
Exclusive buyer listing agreement
Exclusive buyer representation agreement
Open buyer agency agreement
Option contract
A suit to quiet title refers to
The removal of a cloud on the title by court action
A title insurance company's search of the title
A mortgagor relinquishing title after foreclosure
The deposit of a title with an escrow agent
The type of title insurance that will protect the owner and hires is called
Lenders policy
Leasehold policy
Owners policy
Certificate of sale policy
All the following clauses in a loan agreement enable the lender to demand the entire remaining debt to be immediately EXCEPT
Due-on-sale clause
Acceleration clause
Defeasance clause
Alienation clause
The owner of a secluded area adjacent to an ocean noticed that people from town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for several years. He went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be
Unsuccessful because the local citizens have been doing this for years and thus have an easement
Successful because the owners property extends to the low-water mark
Successful because the owner can control access to his own property
Unsuccessful because the owners property extends only to the high water mark and the public may use the land beyond this point
The process by which government can acquire ownership of private land for public use is
Condemnation
Escheat
Eminent domain
Doctrine of public acquisition
A father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property?
Remainderman
Mother
Father's other children
Daughters heirs
Which of the following is an involuntary alienation of property ?
Quitclaim
Inheritance
Condemnation
Gift
What is the commission rate of 5% on a sale of $250,000
25,000
1,750
12,500
3,571
A man leases a store space to open a restaurant. He installs ovens, booths, counters, and other equipment. When would these items become real property?
At lease expiration, if the man does not remove them
After they are installed
After the man defaults on his rental payments
After the lease takes effect
Which of the following is NOT a type of listing contract?
Open
Exclusive agency
Exclusive right to sell
MLS
A house sells for $215,000. The listing brokerage receives a 6% commission on the sale. How much does the listing brokerage receive?
$21,500
$12,900
$6,450
$12,300
Which of these is an example of an economic characteristic of land ?
Immobility
Indestructibility
Uniqueness
Scarcity
Which of the following is a voluntary alienation of the property ?
Adverse possession
Condemnation
Owner sale
Foreclosure
The type of real estate ownership that is MOST all-inclusive is a
Life estate
Fee simple estate
Conditional fee estate
Reversionary interest
In which of the following situations could a quitclaim deed NOT be used?
To convert title
To release a nominal real estate interest
To remove a cloud on title
To warrant that a title is valid
A homeowner constructs a five-bedroom brick house with an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle?
Progression
Assemblage
Change
Regression
When a prospective buyer makes a written purchase offer that the seller accepts, then the
Buyer may take possession of the real estate
Buyer receives equitable title to the property
Seller grants the buyer possessory rights
Buyer receives legal title to the property
Which of the following is the BEST way to ensure that there are no encroachments and verify the boundaries of a parcel of land?
Write a legal description
Find the monuments
Get a spot survey
Verify the benchmarks
A man owned 2 acres of land. He sold one acre to a neighbor and reserved for himself an appurtenant easement over his neighbor's land for ingress and egress. The man's land
Is the servient tenement
Can be cleared of the easement when the man sells the withheld acre to a third party
Is the dominant tenement
Is subject to an easement in gross
According to a broker's comparative market analysis(CMA), a property is worth $225,000. The homeowner bought the property for $190,000 and added $50,000 in improvements, for a total of $240,000. The property sold for $222,500. Which amount represents the property's market value?
$190,000
$222,500
$225,000
$240,000
A buyer has deposited 10% of the sales price of a condominium with the broker as earnest money, and the bank has agreed to lend $51,000, which is 80% of the sales price. How much additional funding must the buyer provide to complete this transaction?
$6,375
$5,100
$5,500
$6,125
The primary mortgage market lenders that have most recently branched out into making mortgage loans are
Credit unions
Endowment funds
Insurance companies
Savings association
In real estate, a sales associate is always
An independent contractor
An employee of a licensed broker
A licensee who performs real estate activities on behalf of a broker
A combination office manager, marketer, and organizer with a fundamental understanding of the real estate industry, who may or may not be licensed
Which of these is a general, statutory, and involuntary lien on both real and personal property?
Federal tax lien
Mechanic's lien
Special assessment
Consumer loan lien
Assume that the listing and selling brokers split the commission evenly. What is the sales price of the property if the listing broker received $2,593.50 and the total commission rate is 6.5%
88,400
79,800
76,200
39,000
A title insurance policy that protects the interests of a mortgagee is called
A leasehold policy
A lender's policy
A certificate of sale policy
An ALTA policy
The rights of ownership of real property include all of the following except
Compatibility
Disposition
Exclusion
Control
Which of the following best defines the law of agency ?
Selling of another's property by a property licensed brokerage company
Principles that govern conduct in business
Rules of law that apply to the responsibilities of a person who acts as agent for another
Rules and regulations of the state's licensing agency
A property owner who does not want to deal with the everyday tasks of managing a rental property can hire
A property manager
An appraiser
A home inspector
A developer
On Monday, the seller offers to sell his vacant lot to the buyer for $42,000. On Tuesday, the buyer counteroffers to buy for $40,500. On Friday, the buyer learns that several other prospects may be making offers on the property, so he withdraws the counteroffer and agrees to the original asking price of $42,000. Under these conditions, there is
A valid agreement because the buyer accepted the seller's offer exactly as it was made
A valid agreement because the buyer accepted before the seller advised the buyer that the offer is withdrawn
Not a valid agreement because the seller's offer was not accepted within 72 hours
Not a valid agreement because the buyers counteroffers was a rejection of the sellers offer, and once rejected, an offer cannot be accepted later.
A woman bought acreage but never saw it and did not use it, although she regularly paid the real estate taxes on it. Without her knowledge, a man moved his mobile home onto the property, drilled a well for water, and lived there for many years. The man may have become the owner of the acreage if he complied with the state laws regarding
Adverse possession
Intestate succession
The statute of frauds
The statute of limitations
A proration of any prepaid utility charges is reflected on a settlement statement in which of the following ways?
Debit to the seller, credit to the buyer
Debit to the buyer only
Credit to the seller only
Debit to the buyer, credit to the seller
Which of the following is not generally exempt from paying real estate taxes?
For profit senior living facility
Municipal government
Charitable hospital
Private not for profit school
The fair housing act does not prohibit discrimination on the basis of
Familial status
National origin
Religious preference
Sexual preference
General real estate taxes are also called
Ad valorem taxes
Special assessments
Appropriation funds
General voluntary liens
The law that requires real estate contracts to be in writing to be enforceable is the
Statute of frauds
Law of descent and distribution
Patrol evidence rule
Statute of limitations
A real estate professional who represents the seller is showing a house to a prospective buyer customer. The real estate professional knows that the house has water problems in the basement. Which of the following is TRUE?
Withholding the information prevents the buyer from making an informed decision
Withholding the information properly protects the confidence of the seller
Disclosing the the information could create a fiduciary relationship with the buyer
Disclosing the information violates the real estate professionals fiduciary duty to the seller
All of these are examples of government policies that can affect the real estate market EXCEPT
The federal reserve boards discount rate
A shortage of skilled labor or building materials
Land use controls, such as zoning
Federal environmental regulations
Molly is a licensed real estate salesperson. She has a written agreement with her broker indicated she will not be treated as an employee. Molly's income is solely from commissions. She does not receive an hourly wage. the IRS will most likely consider Molly
A real estate assistant
Self employed
An employee
A sub agent
A suburban home with four bedrooms and only one bathroom suffers from what condition
Curable physical deterioration
Incurable physical deterioration
Functional obsolescence
External obsolescence
An important characteristic of land is that it may be modified or improved at some point in time. Depending on its type, an improvement may increase the value of real estate greatly. All of the following are considered to be improvements EXCEPT
Sewers
Crops
Buildings
Roads
The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that
All of the sellers interest in the property, if any, belongs to the buyer
The seller owned the property
There are no encumbrances against the property
The buyer now owns the property subject to certain claims of the seller
A real estate professional sells property listed by another brokerage firm in the multiple listing service. The real estate professional has been working with the buyer for many months but does not have an agency contract with him. This real estate professional has fiduciary obligations to
The buyer
No one
The public
The seller
Taxes levied on a property owner to pay for installation of sidewalks or sewers are called
Ad valorem taxes
Special assessments
General property taxes
Special excise taxes
An option is granted when an owner gives the potential purchaser the right to purchase the property
At any time or price
At a fixed price within a certain period of time
Without making any official record of the purchase
None of these
When a mortgage loan has been paid in full, it is important for the borrower to be sure that
The paid note is placed in a safe deposit box
They obtain a deed of partial reconveyance
The paid mortgage is returned to the lender
A satisfaction of mortgage is recorded
In any township, what is the number of the section designated as the school section
1
16
25
36
In a limited partnership
The number of investors is limited to 10
The general partners run the business
All the partners participate in running the business
Investors may participate with only a small amount of capital but with unlimited liability
The commission on the sale of a house is $9,410 and 30% goes to the broker who listed the property. Of the remainder, the broker whose sales associate completed the transaction gets 45%, and the sales associate receives the balance. How much does the sales associate who the sale receive?
$4,389
$3,728
$3,622.85
$2,425
Which of these laws extended housing discrimination protections to families with children and persons with disabilities ?
Civil rights act of 1866
Fair housing amendments act of 1988
Housing and community development act of 1974
Civil rights act of 1968
The statute of frauds requires that real estate contracts to be
Recorded at the courthouse
No longer than 10 pages
Verbal to be enforceable
In writing to be enforceable
After real estate has sold by the state or country to satisfy a delinquent tax lien, defaulted owners usually have a right to
Redeem the property within the time specified by law
Have the sale canceled by paying the back taxes and penalties
Pay their creditors directly and have their liens removed
Record a notice of non-responsibility for the unpaid taxes
A primary feature of property held in joint tenancy is that
A maximum of two people can own the real estate
The fractional interests of the owners can be different
There is always right of survivorship
Additional owners may be added later
A buyer bought a house for $125,000. The house, which had originally sold for $118,250, appraised for $122,500. Based on these facts, if the buyer applies for an 80% mortgage, what will be the amount of loan ?
$94,600
$98,00
$100,000
$106,750
Three brothers bought a farm together, and the deed listed only each of their names. What form of ownership are they pressumed to have taken?
Tenancy by the entireties
Joint Tenancy with right of survivorship
Tenancy in common
In severalty
Who are the parties to a listing agreement ?
Buyer and seller
Seller and broker
Seller and salesperson
Buyer and sales person
A person wants to ensure that the ownership of real property can be willed to her children. Which form of ownership would the person want?
Conventional life estate
Joint tenancy
License
Fee simple estate
A buyer and a seller enter into a sales contract for the sale of a home. The seller changes his mind at the last minute, and the buyer suffers a financial loss of $1500 and must rent a home in which to live in. Unless the contract provides otherwise, all of these are legal actions that are likely to succeed EXCEPT
The buyer may sue the seller for specific performance, forcing the sale of the home to the buyer
The buyer may sure the seller for damages to recover the $1500 loss
The seller is not liable because the buyer should not have incurred the $1500 cost before the sale
The buyer may sure the seller for the rent he paid
The fair housing act is administered by the
Office of Equal Opportunity
Department of Housing and Urban Development
Department of Justice
Federal Court System
Which of the following is NOT a test to identify a fixture?
Size of the item
Intent of the parties
Method of attachment of the item
Adaptations of the item to the real estate
Rights or privileges that are connected with real property are?
Appurtenances
Improvements
Not conveyed with the real estate
Restricted to air and water rights
A tax lien on the property can hinder the sale of a property because it is
A monetary charge that the purchaser must satisfy
An appurtenance that does not affect the title
An encroachment
An encumbrance
If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of
Escheat
Reverter
Eminent domain
Defeasance
A trust that is established after the death of the owner is called
Testamentary trust
Trust by will
Beneficial trust
Living trust
A custom home containing 4320 square feet was recently constructed on a $145,000 lot. Construction costs were $80.25 per sq foot, and other fees and costs totaled $12,785. What was the total cost of the property ?
$145,000
$346,680
$359,465
$504,465
A document that protects against hidden ricks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called
A chain of title
A title insurance policy
An abstract of title
A certificate of title
Another word for uniqueness is
Scarcity
Non-homogeneity
Fructus industrials
Immobility
A woman 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?
Appurtenant easement
Easement in gross
Easement by necessity
License
A house sold for $180,000 and the buyer obtained an FHA-insured mortgage loan for $120,000. If the lender charged two discount points, the buyer would pay
$1200
$1000
$2400
$1800
All funds received by a broker on behalf of his or her principal must be deposited in an escrow or trust account within
3 days of receiving the deposit
3 days of obtaining al signatures
3 banking days of receiving all signatures
3 working days of receiving all signatures
To renew a license in even numbered years, a salesperson or broker must
Pay a fee of $293 only
Be actively participating in the real estate business
Have completed 6 hours of continuing education in the last 2 years
Have completed 12 hours of continuing education in the last 2 years
Who may receive compensation from the real estate guaranty fund?
A broker who does not receive an earned commission
A seller who pays a commission to a broker under false pretenses
A buyer who pays a fee to a broker under a buyer agency agreement
A cooperating broker who does not receive a commission split
Under Connecticut fair housing laws, which of the following individual characteristics has protected class status ?
Religious choice
Sexual orientation
Employment history
Education achievement
The real estate commission consists of how many members
5
9
6
8
Just prior to closing on a residential property, the listing license discovers the plumbing is acting up and there appears to be termite activity. Connecticut Real Estate Law requires the license to take which of the following actions with this information
Not disclose it because of a sellers agents fiduciary duty of loyalty to the principal
Not disclose it because of a seller agents fiduciary duty of confidentiality
Disclose it only if the buyer or the buyers representative asks
Disclose it since it represents known defects that may be a material fact to the buyers decision to proceed
The prescriptive period in the state of Connecticut to acquire title to real property by adverse possession is
7 years
10 years
15 years
17 years
A licensee has a relative who wishes to purchase a rental duplex. In the event the licensee presents an offer to purchase on behalf of the relative, the licensee MUST make which of the following disclosures
No disclosure is required
The licensee's licensing status only
The licensee's employing broker's name only
The licensee's status and a license representing a relative
In Connecticut, how old must an individual be to qualify for a real estate license?
16
17
18
21
Subdivision plans in Connecticut must be drawn up by a
Licensed surveyor
Local planning commission
Building architect
Licensed mechanical engineer
The commission has the power to revoke a salesperson's license if the salesperson
Attempts to represent a real estate broker other than her employer
Attempts to represent a buyer
Enters into exclusive listing contract
Deposits a buyers down payment into an escrow account
In Connecticut the percentage of the real estate commission/ marketing fees to be paid are
Set by the real estate commission
Set by law
Determined by local groups of brokers
Negotiable between the seller/buyer and broker
A licensed real estate salesperson must be
Affiliated with a licensed real estate broker
An employee of a licensed real estate broker
An independent contractor
Willing to enter into agency relationships with clients
A seller is required to give a buyer a residential property condition disclosure report in all of the following transactions EXCEPT
When the seller is not assisted by a licensed real estate agent
If the seller has not resided on the property in the last year
A sale of commercial property
If the buyer has lived on the property as a tenant
According to Connecticut real estate license law, a CORRECT statement about a listing agents obligation regarding multiple, simultaneous offers on a property is that the licensee is required to
Submit all offers to the owners
Submit only the offer that is most advantageous to the owner
Discuss the matter and with owner and submit those the owner requests
Review them for contingencies and unacceptable requests for seller concessions
A listing licensee shares the following confidential information with a prospective buyer: "The property owner is having financial problems and must sell, not only quickly, but perhaps even below list price". According to Connecticut real estate license law, under which of the following circumstances would this be legal?
The information is related to a recorded tax lien
The owner has granted consent to disclose this information
The licensee has a disclosed dual agency with the buyer and seller
The buyers offering price is known by the licensee to be acceptable to the owner
All real estate salespersons' licenses
Are granted in perpetuity
Do not need to be renewed unless previously revoked
Expire annually on April 30
Expire annually on May 31
Which of the following statements about designated agency in Connecticut is CORRECT?
If a designated agent is at an office meeting, the agents property cannot be discussed
A broker can appoint more than one licensee to act as a designated seller or buyer agent in a transaction
A broker must ensure that clerical staff does not work for designated agents representing opposing parties
A licensee appointed to act as a designated agent cannot be appointed to work for both parties in a transaction since designated agents cannot also be dual agents
In Connecticut, buyer brokerage contracts
Must be in a writing to be enforceable
Must be on specific forms
Are not regulated under the license law
Are illegal
Connecticut land records are indexed through
A Torrens system
Current property owners
The location of the property
Grantor/grantee indexes
According to Connecticut real estate license law, a CORRECT statement about a licensee receives an earnest money check on a property listed by another firm. In this case the licensee is required to take which of the following actions with the check ?
Keep it with the paper work until closing
Turn it over to the listing broker promptly
Turn it over to the licensee's broker promptly
Deposit in the licensee's business account with 48 hours
The maximum compensation that will be paid from the real estate guaranty fund for any single transaction is
$15,000
$10,000
$25,000
$50,000
In Connecticut, an individual may enter into legally enforceable contracts(with No exceptions) when he or she reaches the age of
18
19
21
16
A licensed real estate salesperson is EXEMPT from the appraisal licensing requirements when the salesperson
Has taken an appraisal course
Does not charge a fee for what is referred to as "appraisal services"
Estimates the value of real estate as part of a market analysis
Performs appraisals work for real estate clients only
In Connecticut, under which of the following circumstances MUST a licensee ask a seller to disclose that a residential property is on the market due to a recent suicide having occurred there?
Always
If the event occurred within the last year
If the prospective purchaser puts the request in writing
Whenever the licensee is acting as a dual agent in a transaction
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