PERRY REAL ESTATE EXAM| PERRY
REAL ESTATE FINAL EXAM PRACTICE
QUESTIONS AND
CORRECT SOLUTIONS
On March 7 a buyer and a seller execute a contract for the purchase of the
sellers property. Closing is set for June 10. On April 15 the property is struck by
lightning and destroyed by the resulting fire. If the uniform vendor and purchase
or risk act has been adopted by the state in which the
property is located, which party bears liability for the loss? - CORRECT
ANSWER ✔✔In states that have adopted the uniform vendor and purchaser
act, the seller remains responsible for the property until the day of closing
The term statue of limitation is best described as the limitation on the -
CORRECT ANSWER ✔✔Every state limits the right during which parties to
a contract may bring a legal action to enforce their rights. Rights not enforced
within the Applicable time period Are lost
In case the buyer decides not to buy for no legal reason, the contract may
provide at the earnest money is there as - CORRECT
ANSWER ✔✔Liquidated damages limit the compensation available to the
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,injured party should a breach of contract occur
What is minimum consideration in a valid contract - CORRECT
ANSWER ✔✔Anything the parties agree is good and valuable
What is an example of a unilateral contract - CORRECT ANSWER
✔✔In a
unilateral contract only one party is obligated to perform. The optionorowner of
the property must sell at the agreed-upon price only if the optionee he decides to
buy
PITT stands for - CORRECT ANSWER ✔✔Possession
Interest
Time
Title
The term "metes" refers to - CORRECT ANSWER ✔✔Distance
Mary received a life estate in 310 Broadway. Mary died in 2011. This means
that the life estate - CORRECT ANSWER ✔✔A life estate is a freehold
estate limited in duration to the life of the owner or some other designated
person
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, He governments payment to a landowner for seizure of his or her property
is called - CORRECT ANSWER ✔✔Just compensation
Ownership of real estate by one individual is called - CORRECT
ANSWER ✔✔Severalty
The amount a property increases in value after successful assemblage is -
CORRECT ANSWER ✔✔Plottage
The cost approach estimates accrued depreciation using the - CORRECT
ANSWER ✔✔Straight line method
A business in which real estate investors pull the resources to own a
particular property is called - CORRECT ANSWER ✔✔Syndicate
Adjusted cost basis includes all the following except - CORRECT
ANSWER ✔✔Taxes
For income producing property is the amount remaining after all expenses
have been paid is known as - CORRECT ANSWER ✔✔Cash flow
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REAL ESTATE FINAL EXAM PRACTICE
QUESTIONS AND
CORRECT SOLUTIONS
On March 7 a buyer and a seller execute a contract for the purchase of the
sellers property. Closing is set for June 10. On April 15 the property is struck by
lightning and destroyed by the resulting fire. If the uniform vendor and purchase
or risk act has been adopted by the state in which the
property is located, which party bears liability for the loss? - CORRECT
ANSWER ✔✔In states that have adopted the uniform vendor and purchaser
act, the seller remains responsible for the property until the day of closing
The term statue of limitation is best described as the limitation on the -
CORRECT ANSWER ✔✔Every state limits the right during which parties to
a contract may bring a legal action to enforce their rights. Rights not enforced
within the Applicable time period Are lost
In case the buyer decides not to buy for no legal reason, the contract may
provide at the earnest money is there as - CORRECT
ANSWER ✔✔Liquidated damages limit the compensation available to the
Page 1 of 26
,injured party should a breach of contract occur
What is minimum consideration in a valid contract - CORRECT
ANSWER ✔✔Anything the parties agree is good and valuable
What is an example of a unilateral contract - CORRECT ANSWER
✔✔In a
unilateral contract only one party is obligated to perform. The optionorowner of
the property must sell at the agreed-upon price only if the optionee he decides to
buy
PITT stands for - CORRECT ANSWER ✔✔Possession
Interest
Time
Title
The term "metes" refers to - CORRECT ANSWER ✔✔Distance
Mary received a life estate in 310 Broadway. Mary died in 2011. This means
that the life estate - CORRECT ANSWER ✔✔A life estate is a freehold
estate limited in duration to the life of the owner or some other designated
person
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, He governments payment to a landowner for seizure of his or her property
is called - CORRECT ANSWER ✔✔Just compensation
Ownership of real estate by one individual is called - CORRECT
ANSWER ✔✔Severalty
The amount a property increases in value after successful assemblage is -
CORRECT ANSWER ✔✔Plottage
The cost approach estimates accrued depreciation using the - CORRECT
ANSWER ✔✔Straight line method
A business in which real estate investors pull the resources to own a
particular property is called - CORRECT ANSWER ✔✔Syndicate
Adjusted cost basis includes all the following except - CORRECT
ANSWER ✔✔Taxes
For income producing property is the amount remaining after all expenses
have been paid is known as - CORRECT ANSWER ✔✔Cash flow
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