Modern Real Estate Quiz
Circle the letter of the Answer that corresponds to the displayed Question.
1. Reference to a recorded plat
A. The first place to file a complaint by those who have been injured by discriminatory housing acts.
B. implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit
C. A method of land description that uses lot and block numbers.
D. A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be
varied or contradicted by prior or contemporaneous oral or written negotiations.
2. encapsulation
A. the only legal way a landlord can evict a tenant; through a hearing before a magistrate in small claims court.
B. An estate in which the holder has a fee simple title that may be terminated upon the occurrence or nonoccurrence of a
specified event. Two categories of defeasible fee estates exist: fee simple determinable and fee simple on condition
subsequent.
C. Sealing off of disintegrating asbestos or chipping and peeling lead based paint; may be preferable to removal; still
leaves hazard behind
D. also called a "term loan", it only calls for periodic payments of interest.
3. mortgage servicing disclosure statement
A. The point at which a metes and bounds description begins.
B. A listing agreement under which the broker's commission is contingent on the broker personally producing a ready,
willing, and able buyer before the property is sold by the seller or another broker.
C. a statement that tells the borrower whether the lender intends to service the loan or to transfer it to another lender.
D. A notice that there is and action or lawsuit pending that may adversely affect the title.
4. fixed rental lease
A. A type of contract in which the agreement of the parties is demonstrated by their actions or conduct.
B. Land; a portion of the earth's surface extending downward to the center of the earth and upward infinitely into space,
including all things permanently attached to it, whether naturally or artificially
C. also called a "term loan", it only calls for periodic payments of interest.
D. the tenant's obligation to pay a fixed rental amount, and the landlord pays all taxes, insurance premiums, mortgage
payments, repair costs; also called a gross lease.
5. Equity
A. when agents unintentionally misinform a buyer, seller, tenant, or landlord concerning a material fact because they do not
have actual knowledge of the fact, b/c they have incorrect information, or b/c of a mistake by the agent.
B. The interest or value that an owner has in property over and above any indebtedness.
C. Real property uses that were legally established before adoption of current zoning plan, but have been "grandfathered".
D. the bottom of the wall frame that connects the studs to the flooring
6. Parol evidence rule
, A. The tract that benefits from an easement.
B. A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be
varied or contradicted by prior or contemporaneous oral or written negotiations.
C. the bottom of the wall frame that connects the studs to the flooring
D. Property taxes and special assessments, then in order of time and date files (pure race), except mechanics lien, which
dates to date labor began or materials were first provided.
7. installment sale
A. the one who usually conducts the proceedings at a closing and calculates the division of income and expenses between
the parties.
B. A transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets
certain requirements, a taxpayer can postpone reporting such income until future years.
C. a relationship in which the agent is placed in the position of trust and confidence to the principal.
D. offer acceptance communication
8. executed contract
A. takes place when agents do not have actual knowledge of a material fact but should reasonably have known of such a
fact.
B. A contract in which all parties have fulfilled their promises.
C. a note secured by a mortgage or deed of trust given by a buyer as a borrower, to a seller, as lender, as part of the
purchase price of the real estate.
D. One entitled to receive a remainder interest in some estate sometime in the future.
9. Aesthetic Zoning
A. When a person dies without having left a will.
B. An area zoned strictly for aesthetic or appearance considerations
C. 1)Note rate 2)Index 3)Margin 4)Interest rate caps 5)Payment Cap 6)Adjustment Period 7)Conversion option
D. implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit
10. frieze board
A. the insulation value of materials
B. a wooden board fastened at the top of the exterior wall under the eave soffit to prevent penetration of weather elements
C. uses the three-party deed of trust instrument as security for the mortgage debt; the borrower conveys legal title to a
trustee to hold for the lender until the debt is paid off. NC uses this theory.
D. The tract that benefits from an easement.
11. acceptance
A. Uses boundaries and measurements of the land.
B. Illegal practice by lending institutions to deny or discourage loan application in an area based on its racial composition or
deterioration.
C. occurs when the offeree signs the offer without making any changes to it, thereby evidencing his acceptance and
willingness to be bound by and perform all terms of the offer.
D. charging interest in excess than the maximum rate established by state law.
12. rescission
, A. The legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions.
B. A deliberate agreement between parties offer and acceptance; "meeting of the minds." A requirement of a legally
enforceable contract.
C. imposes restrictions and limitations on high-cost loans; revises permissible fees and charges on certain loans; prohibits
unfair or deceptive practices by lenders
D. due diligence
13. Judgments
A. When an improvement or any portion of an improvement, such as a building, a fence, or a driveway illegally extends
beyond the land of its owner and covers some land of an adjoining owner/street/alley.
B. A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder's
right as a tenant to an individual apartment.
C. A decree issued by a court.
D. The possible use of a property that would produce the greatest net income and thereby develop the highest value
14. fixed rate-level payment mortgage
A. made up of lenders that originate mortgage loans
B. Estimate based on the present worth of the future rights to income.
C. money or property given to make up any difference in value or equity between two properties in a 1031 exchange
D. The most popular repayment plan; both the interest rate and the debt service amount are set for the duration of the loan
15. Planned Unit Development (PUD)
A. A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development
or subdivision.
B. Typically a small amount of compensation, usually paid up front by the buyer/client when the buyer-agency agreement is
established.
C. The power of a good or service to command other goods or services in exchange. Also, the present worth of future
benefits arising from the ownership of real property.
D. NC law that requires many types of real estate documents to be recorded for protection against claims from third parties.
16. acceleration clause
A. A personal interest in or right to use the land of another. The right to use is not attached to any ownership. (personal or
commercial)
B. a quasi-government agency established to purchase any kind of mortgage loans in the secondary mortgage market from
the primary lenders.
C. also called a "term loan", it only calls for periodic payments of interest.
D. the clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower
defaults on an installment payment or another covenant.
17. like-kind properties
A. An attempt by the offeree to change any of the terms proposed by the offeror
B. 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).
C. An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.
D. a leasehold estate that continues for a definite period of time, whether for years, months, weeks, or days; automatically
terminates at the end of the lease period.
18. eave
, A. the overhand of a sloping roof that extends beyond the walls of the house.
B. The home is owned by an individual (not 3 or more/not sell more than 1 every 2 years.
C. The easiest but least precise way to measure depreciation that uses the effective age of a building & its economic life.
D. Warranties
19. North Carolina Condominium Act of 1986
A. The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden change in the course of a
stream. The loss of land may not result in loss of title to the property.
B. A state law that requires that certain instruments that convey interest in real estate be in writing to be legally enforceable,
such as deeds, real estate sales contracts, and certain leases.
C. Specifies that a condo is created and established when the developer executes and records a declaration of its creation
in the county where the property is located
D. An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated
person or persons.
20. Federal Fair Housing Act
A. one who is employed by a person already acting as an agent (and agent of the agent).
B. the wooden skeleton of the house consisting of the floors, walls, ceilings, and roof
C. Federal law that prohibits discrimination based on familial status, race, sex, handicap, color, religion, national origin.
(FRESH CORN)
D. This type of lien affects all the property of a debtor, both real and personal, rather than a specific parcel of real property
21. deed of trust
A. the document that pledges the property to the lender as security or collateral for a debt; also called mortgage.
B. a type of mortgage that generally originates at one rate of interest, with the rate fluctuating up or down during the loan
term based on the movement of a published index.
C. Money damages awarded to the injured party to compensate them for the breach of contract, but not to punish the
breaching party.
D. An easement that is annexed to the ownership of one parcel of land and used for the benefit of another parcel of land.
The easement "runs with the land"
22. soil suitability test
A. created when a property owner promises to give the contracting party the first chance to buy the property or to match
the bona fide offer of a third party, should the owner decide to sell.
B. a column, usually of masonry block or steel-reinforced concrete; bears wall weight.
C. a test that measures the soil's ability to absorb and drain water; usually paid for by the buyer.
D. the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges
23. statutory redemption period
A. exaggerated comments or opinions; "This house has the best view in town!"
B. Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above
it (air rights) or the minerals below the surface (subsurface rights).
C. 1)acceleration clause 2)prepayment penalty clause 3)due-on-sale clause
D. 10 day period after the auction in which the borrower can try to raise the necessary funds to redeem the property.
24. Life Tenant
