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AYOP REAL ESTATE FINAL EXAM PREP
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AYOP REAL ESTATE FINAL EXAM PREP
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AYOP REAL ESTATE FINAL EXAM PREPTo be valid for more than a year, a covenant, condition, and restriction (CC&R) must
meet which of the following conditions? - Answers-It must be in wriitng
How are gross income multipliers calculated? - Answers-By dividing the asking price of
a property by the gross monthly income generated by that property
If a landlord pays the property taxes, the property insurance premiums, the
maintenance costs for the property, utilities costs, and the costs of any janitorial service,
which of the following types of leases are the tenants under? - Answers-A gross lease
Which of the following potential issues is not typically within the scope of the real estate
license to determine when trying to assist a client? - Answers-Whether the title is clear
To ensure an accurate account of funds for each customer who has a client trust
account..... - Answers-A separate ledger should be kept for each client
Under the topic of trust accounts, what is the best practice regarding deposits? -
Answers-To make sure that the customer submits any monies needed as early as
possible, and to know when the deposit clears by keeping up to date with the bank
records
If a broker were to place a client trust account into an unauthorized interest earning
account would this be considered commingling, conversion, or neither? - Answers-
Commingling
A licensee may use the term "team" or "group" to advertise if:
a. the licensee members of the team or group are associated with the same principal
broker or property manager
b. the use of the term team is not deceptively similar in name under which any other
person is lawfully doing business
c. All of these
d. the use of the term does not constitute the unlawful use of a trade name - Answers-
All of these
In Oregon, if a lender wishes to foreclose on a delinquent homeowner, how long does
the homeowner have to respond to the lender's notice to request mediation? - Answers-
25 days
In a water shortage, what determines who gets the water under Oregon Water Rights?
a. beneficial purpose without waste
b. priority
c. must be used
d. appurtenancy - Answers-Priority
,Odette owns several dozen acres of undeveloped land. Some roads have been
constructed and the main water and sewage lines have been installed. There are no
houses built or being built. This subdivision would be considered to be which of the
following?
a. underutilized
b. incomplete
c. developed
d. undeveloped - Answers-developed
Gordon owns a small theme park that he operates with his two children, Verne and
Cassie. After years of managing the park, Gordon decides to retire and leave the park to
Verne and Cassie. The deed transferring control of the park states that his children will
both have ownership of the property as joint tenants. However, the deed does not
mention anything about survivorship. What kind of tenancy has actually been created
through the deed?
a. a tenancy in common
b. a tenancy by the entirety
c. a joint tenancy
d. a tenancy at sufferance - Answers-a tenancy in common
Omar owns an office building. He is diagnosed with cancer and this forces him to
consider the future of his assets which include the office building. He would prefer to
pass ownership of his entire estate to his son, Jerome. Unfortunately, Jerome in only
nine years old. To make matters worse, Omar is estranged from his sister and business
parter, Paula and fears she is preparing to seize control of his estate when he dies.
What should Omar do?
a. create a testamentary trust in his will with Jerome as his beneficiary
b. create a testamentary trust with inter vivos trust with Paula as the trustee
c. none of these are correct
d. deed the property to Jerome as a life estate - Answers-create a testamentary trust in
his will with Jerome as the beneficiary
The property Andy owns turns out to have a wealth of underground minerals. A mining
company approaches Andy and offers to buy the subsurface right to the property. What
should Andy do if he is willing to let the mining company take the mineral wealth out of
the ground but he does not want to surrender his subsurface rights?
a. allow the mining company to establish a profit on his property
b. allow the mining company to establish an easement in gross on the property
c. sell a license to the mining company each time they come to take the mineral wealth
out of the ground
d. establish an equitable servitude with the mining company that allows then to take the
mineral wealth - Answers-allow the mining company to establish a profit on his property
Vince buys several acres of land to develop into a small housing subdivision. Once he
has acquired ownership of the land, he goes about breaking the land up into smaller
,pieces on which houses will be built. When Vince lists one of these smaller plots, which
method will he need to use to legally describe it?
a. assessment boundary
b. rectangular survey
c. metes and bounds
d. lot and block - Answers-lot and block
Xander is a real estate professional representing a client who is selling their house. A
couple weeks after the house is listed for sale, a number of offers come in. The client is
impatient and insists on going with the first offer that came in. Xander insists that they
sit down and carefully read through each other. After closely examining each offer, it
turns out the first one was the best. Which duty did Xander fulfill?
a. the duty of accounting
b. the duty of disclosure
c. the duty of care and skill
d. the duty of performance and obedience - Answers-the duty of care and skill
Crystal runs a business out of a building that she is leasing. She pays $1,430 a month
which includes the rental payment and some other recurring costs. One day, she
receives a letter from the city informing her that the fee for garbage collection is
increasing. Where should Crystal look to see if this increase in fees will affect her
monthly lease payments?
a. the rent clause
b. the use clause
c. the expenses clause
d. the improvements clause - Answers-the expenses clause
Nephew wants to buy Aunt's home but is warned by Broker of a lien and a boundary
issue, so seek the advice of a title company. The title insurance policy but with limited
coverage. Under these circumstances, what kind of title would Nephew be acquiring?
a. an insurable title
b. a marketable title
c. a mobile title
d. a clear title - Answers-an insurable title
Lenders are required to provide which of the following for credit transactions that have
the partial exemption from the TILA-RESPA rule?
a. none of these
b. a special information booklet
c. a loan estimate
d. a closing disclosure - Answers-none of these
Which of the following type of living situations are exempt from the Fair Housing Act?
a. none of these are exempt from the fair housing act
b. all rentals involving a single residence
c. private homes
, d. roommates - Answers-roomates
What is the maximum penalty for a real estate broker who lets their license lapse and
continues to practice real estate for two months?
a. $1,000.
b. $500
c. $1,500.
d. $2,000 - Answers-$1,500
Under the topic of trust accounts, what is the best practice regarding deposits?
a. to have a separate bank account for every customer, so that their deposits are never
mixed with anyone else's
b. to require every customer to keep strict records of when a deposit is submitted, and
to allow the licensee access to this information when necessary
c. there is no best practice
d. to make sure that the customer submits any monies needed as early as possible, and
to know when the deposit clears by keeping up to date with the bak records - Answers-
d. to make sure that the customer submits any monies needed as early as possible, and
to know when the deposit clears by keeping up to date with the bak records
Using one client's money to cover the costs for an unrelated client is referred to as :
a. none of these
b. conversion
c. commingling
d. overdrafting - Answers-conversion
To ensure an accurate account of funds for each customer who has a client trust
account....
a. the licensee should require every customer to keep strict records of their deposits
b. a separate bank account should be kept for every client
c. a ledger should be kept that contains a record of all client's trust fund accounts, both
past and present
d. a separate ledger should be kept for each client - Answers-a separate ledger should
be kept for each client
In what situation is it legal to give a real estate finder's fee to a non-licensed individual?
a. the finder's fee is applied to the non-licensed individual's mortgage loan
b. it is never legal in Oregon to give any form of real estate payment to a non-licensed
individual
c. the non-licensed individual is not related to the person they referred
d. the finder's fee is given to a tenant in exchange for finding another tenant - Answers-
the finder's fee is given to a tenant in exchange for finding another tenant
Property Manager manages an apartment building where rent is due on the 5th of each
month. On Sept. 1st, Tenant A comes to the manager's office to pay in cash. The next
day, PM finds a rent check has been delivered by Tenant B. On the 4th, PM meets a
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