Prep Agent Exam Questions With 100%
Correct Answers
Pre-Payment Penalty Clause
A clause that allows a penalty to be enforced if the mortgage is paid off early.
Master Plan
A comprehensive plan to allow a city to grow in an orderly and sound manner
Percentage Lease
A lease, commonly used for commercial property, whose rental is based on the tenant's gross sales at
the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a
certain amount.
Backfill
What is removed by excavation, then later used for construction to brace a structure, especially a
foundation or footings?
Laches
An unreasonable delay by a party making a claim or bringing an action, so that the rights of said party
are waived
Blanket Mortgage
A mortgage covering more than one property of the mortgagor, such as a mortgage covering all the
lots of a builder in a subdivision.
Steering
A form of racial discrimination where brokers or salespeople direct interested buyers away from and
toward certain neighborhoods to control racial composition.
Estoppels
Stops anyone from taking a position which is in conflict with a previous position or a previous action:
Narrative Form Appraisal Report
The most detailed of the appraisal reports in which conclusions are supported and explained:
Police Power
The authority that local, state, and federal governments have to change the use of a property for
planning purposes.
Insurance
A contract under which, for a consideration, one party agrees to indemnify another for a possible loss
under specific conditions is called:
Safety Clause
, A clause in a listing which states that if the property is sold during a specified period after the
expiration of the listing (or any extension thereof) to a buyer provided during the listing period by the
broker, the commission shall be paid.
Profit and Loss Statement
A statement showing the income and expenses of a business over a stated time.
Steering
The illegal practice of directing home seekers to particular areas either to maintain the homogeneity
of an area or to change the character of an area, which limits where they can live.
Zoning
Regulations that control the use of land within a jurisdiction
open end clause
A provision in a mortgage contract that allows the mortgaged real estate to be used as security to
borrow additional money.
Affiant
Any person who makes an affidavit or gives evidence.
Listing
An agreement between an owner of real property and a broker, whereby the agent agrees to secure a
buyer or tenant for a specific property at a certain price and terms in return for a fee or commission.
Subordination Clause
A clause that allows a mortgage, added at a later date, to take priority over an existing mortgage.
Puffing
An opinion not made as a representation of fact, but intended to enhance the value of the property.
Foreclosure
A process that allows a lender to recover the amount owed on a defaulted loan.
Fee Simple Estate
Highest possible ownership interest that can be held in real property.
Abstract of Title
A condensed history of a title to a particular piece of real estate, including a summary of the original
grant, and all subsequent conveyances and encumbrances affecting the property.
Easement Appurtenant
The permanent right to use another's land for the benefit of a neighboring parcel
Correct Answers
Pre-Payment Penalty Clause
A clause that allows a penalty to be enforced if the mortgage is paid off early.
Master Plan
A comprehensive plan to allow a city to grow in an orderly and sound manner
Percentage Lease
A lease, commonly used for commercial property, whose rental is based on the tenant's gross sales at
the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a
certain amount.
Backfill
What is removed by excavation, then later used for construction to brace a structure, especially a
foundation or footings?
Laches
An unreasonable delay by a party making a claim or bringing an action, so that the rights of said party
are waived
Blanket Mortgage
A mortgage covering more than one property of the mortgagor, such as a mortgage covering all the
lots of a builder in a subdivision.
Steering
A form of racial discrimination where brokers or salespeople direct interested buyers away from and
toward certain neighborhoods to control racial composition.
Estoppels
Stops anyone from taking a position which is in conflict with a previous position or a previous action:
Narrative Form Appraisal Report
The most detailed of the appraisal reports in which conclusions are supported and explained:
Police Power
The authority that local, state, and federal governments have to change the use of a property for
planning purposes.
Insurance
A contract under which, for a consideration, one party agrees to indemnify another for a possible loss
under specific conditions is called:
Safety Clause
, A clause in a listing which states that if the property is sold during a specified period after the
expiration of the listing (or any extension thereof) to a buyer provided during the listing period by the
broker, the commission shall be paid.
Profit and Loss Statement
A statement showing the income and expenses of a business over a stated time.
Steering
The illegal practice of directing home seekers to particular areas either to maintain the homogeneity
of an area or to change the character of an area, which limits where they can live.
Zoning
Regulations that control the use of land within a jurisdiction
open end clause
A provision in a mortgage contract that allows the mortgaged real estate to be used as security to
borrow additional money.
Affiant
Any person who makes an affidavit or gives evidence.
Listing
An agreement between an owner of real property and a broker, whereby the agent agrees to secure a
buyer or tenant for a specific property at a certain price and terms in return for a fee or commission.
Subordination Clause
A clause that allows a mortgage, added at a later date, to take priority over an existing mortgage.
Puffing
An opinion not made as a representation of fact, but intended to enhance the value of the property.
Foreclosure
A process that allows a lender to recover the amount owed on a defaulted loan.
Fee Simple Estate
Highest possible ownership interest that can be held in real property.
Abstract of Title
A condensed history of a title to a particular piece of real estate, including a summary of the original
grant, and all subsequent conveyances and encumbrances affecting the property.
Easement Appurtenant
The permanent right to use another's land for the benefit of a neighboring parcel
