Real Estate Exam Prep 2023 - practice
test
1 What is the difference between a gross lease and a net lease? - ANSWER-A gross
lease includes all property costs in the rental fee, while a net lease requires the tenant
to pay for additional property costs
2 What is the purpose of a subordination clause in a loan agreement? - ANSWER-To
establish the hierarchy of loans and prioritize repayment
3 What is the highest level of property ownership? - ANSWER-Fee Simple Absolute
Estate
What is the purpose of the Sherman Antitrust Act? - ANSWER-To prevent monopolies
and protect the open marketplace
What is the difference between void and voidable contracts?
What is the definition of real property? - ANSWER-Land, above the land, below the
land, and attached to the land- ANSWER-Void contracts are missing key elements or
contain illegal elements, while voidable contracts can be voided by either party due to
certain conditions
What is the definition of easements? - ANSWER-The right for another party to enter
someone else's property
What is the acronym used to determine if an item is a fixture? - ANSWER-MARIA
What is the purpose of an acceleration clause in a loan agreement? - ANSWER-To
allow the lender to accelerate loan repayment if conditions are unmet
What are the four elements of value in real estate? - ANSWER-Scarcity, Transferability,
Utility, Demand (STUD)
What is the definition of personal property? - ANSWER-Moveable property, such as
chattels and intangibles
test
1 What is the difference between a gross lease and a net lease? - ANSWER-A gross
lease includes all property costs in the rental fee, while a net lease requires the tenant
to pay for additional property costs
2 What is the purpose of a subordination clause in a loan agreement? - ANSWER-To
establish the hierarchy of loans and prioritize repayment
3 What is the highest level of property ownership? - ANSWER-Fee Simple Absolute
Estate
What is the purpose of the Sherman Antitrust Act? - ANSWER-To prevent monopolies
and protect the open marketplace
What is the difference between void and voidable contracts?
What is the definition of real property? - ANSWER-Land, above the land, below the
land, and attached to the land- ANSWER-Void contracts are missing key elements or
contain illegal elements, while voidable contracts can be voided by either party due to
certain conditions
What is the definition of easements? - ANSWER-The right for another party to enter
someone else's property
What is the acronym used to determine if an item is a fixture? - ANSWER-MARIA
What is the purpose of an acceleration clause in a loan agreement? - ANSWER-To
allow the lender to accelerate loan repayment if conditions are unmet
What are the four elements of value in real estate? - ANSWER-Scarcity, Transferability,
Utility, Demand (STUD)
What is the definition of personal property? - ANSWER-Moveable property, such as
chattels and intangibles
