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Modern Real Estate Quiz 11Questions and Answers
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Modern Real Estate Quiz 11Questions and Answers
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Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. Federal Emergency Management Agency (FEMA)
A. Agency responsible for designating flood hazard areas bordering rivers and streams.
B. a loan that includes not only the real estate, but also all fixtures and appliances installed on the premises; has been
used extensively in financing furnished condo units
C. the one who usually conducts the proceedings at a closing and calculates the division of income and expenses
between the parties.
D. A real estate licensee who performs real estate activities under the supervision of a licensed real estate broker-in-
charge. Must complete post-licensing courses to remove the provisional license status
2. Future Interests
A. A person's present right to an interest in real property that will not result in possession or enjoyment until someone in
the future, such as a reversion or right or reentry.
B. Lien that is attached to real property as of the listing date.
C. laws that prohibit monopolies and contracts, combinations, and conspiracies that unreasonable restrain trade.
D. a loan made to finance the construction of improvements on real estate--homes, apartments, office buildings
3. Executory Contract
A. A contract under which something remains to be done by one or more of the parties.
B. A defect on a deed that is frequently cured by a quitclaim deed.
C. A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer.
The broker represents the buyer under the law of agency.
D. An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an
equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the
substitution.
4. Amortized Loans
A. A loan in which principal as well as interest is payable in periodic installments over the term of the loan.
B. Gradual recession of water which uncovers land that usually belongs to the riparian owner.
C. a corporation established to purchase primarily conventional mortgage loans in the secondary market
D. A declaration of limitations established by a developer.
5. Deed restrictions
A. a lease that provides for increases in rent to occur at set future dates; often used in the rental of office space for
multiple-year terms. Also called a step-up lease.
B. Owner's title insurance policy that protects the owner against title defects not found in public records.
C. A type of contract in which one party makes a promise to induce a second party to do something. "I will give you a
reward if you find my dog"
D. Encumbrances on real property. AKA: covenants, conditions, restrictions. A private agreement placed in public record
that affect the use of the land.
6. Protected Classes
, A. For the life of another. A life estate pur autre vie is a life estate that is measured by the life of a person other than the
grantee.
B. A type of contract in which one party makes a promise to induce a second party to do something. "I will give you a
reward if you find my dog"
C. Race, Color, Religion, National Origin, Sex, Handicapped, Familial Status
D. boards nailed horizontally to the vertical studs, with or without intervening sheathing, to form the exposed surface of
the outside walls of the building; can be made of wood, metal, or masonry sheets.
7. discount point
A. interest paid in advance; one point equals 1% of the loan amount for the borrower and increases the yield for the
investor approximately 1/8%.
B. For the life of another. A life estate pur autre vie is a life estate that is measured by the life of a person other than the
grantee.
C. A title that is free of liens and encumbrances, defects, and protects purchaser from hazard of litigation and is
convincible legally significant.
D. NC requirements as to construction standards, with the primary purpose being safety.
8. closing statement
A. A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and
all cash paid out in the transaction.
B. the final step in the appraisal process, in which the appraiser combines the estimates of value received from the sales
comparison, cost, and income capitalization approaches to arrive at a final estimate of market value for the subject
property.
C. a way to lower the initial interest rate on a mortgage or deed of trust loan; common type is called a 3-2-1
D. a tax term used in exchanges; property may be exchanged for life in kind property and the tax postponed (does not
refer to the physical similarity of the properties).
9. Easement by prescription
A. When a claimant has made use of another's land for a certain period of time. Use must be continuous, exclusive, and
without the owners approval. (20 years in NC)
B. A real estate licensee who performs real estate activities under the supervision of a licensed real estate broker-in-
charge. Must complete post-licensing courses to remove the provisional license status
C. The reversion of property to the state in cases where a person dies intestate.
D. the right of a borrower in default on a mortgage loan to reclaim the forfeited property prior to the foreclosure sale
through payment in full of all debt and associated costs.
10. Subjacent Support
A. Fixed objects used to establish real estate boundaries. Ex.: stones, trees, lakes, streets, markers placed by
surveyors.
B. Prevents the borrower from letting someone assume the debt without the lender's approval.
C. A claim, charge, or liability that attaches to and is binding on real estate.
D. The support of the surface of land by the land's subsurface; duty of the owned of subsurface rights to support the
surface of the land.
Circle the letter of the Question that corresponds to the displayed Answer.
11. When you deduct the annual operating expenses of the real estate from the effective gross income.
A. counteroffer
B. Deed in lieu of Foreclosure
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