REAL ESTATE EXAM PREP: LATEST KEY QUESTIONS AND ANSWERS FOR AN A+

REAL ESTATE EXAM PREP: LATEST KEY QUESTIONS AND ANSWERS FOR AN A+ A seller must provide a buyer with a real estate transfer disclosure statement in which of the following transactions? a. a sale of a four unit residential building b. a bankruptcy sale c. a trustee sale d. a husband to wife transfer b. recording pf real estate related documents is a method of giving construction notice, not actual notice, of the content of the documents The court case of Easton v, Strasburg expanded which of the following real estate procedures a. disclosures of economic obsolescence b. selling properties 'as is' c. disclose of all known material fact regarding the physical condition of the property, d. advising buyers of their right to have own inspections c Larry sold his house to Mel, who did not record the deed, but moved in. Larry then sold the same property to Jane, who reviewed the county recorders records, but did not look at the property. Larry gave Jane a deed, which she recorded. Which of the following would be true concerning title to the property? a. Mel an Jane are co-owners of the property b. Jane now owns the property c. Jane has recourse against Mel for failure to record d. Mel maintains title Although Mel did no record his deed, he took possession by moving in . Possession of the property by Mel give constructive notice. Since Jane recorded after Mel took possession, she had constructive notice of Mel's rights the title company conducts a title search by searching the records of the a. county recorders office b. county clerks office c. federal land office d. all of the above All of the offices are searched by a title company when conducting a title search The added protection of an ALTA title insurance policy over a CLTA policy is guarding against a. existing liens and encumbrances of record b. an invalid deed in the chain of title c. an error on the sequence of recording trust deed loans d. a dispute over property lines which would be disclosed by a survey An ALTA policy includes a survey and would protect against a property line dispute, Loss of title results from a erosion b. prescription c. accretion d. certiorari a erosion results in loss of title. Accretion is the addition of land by depositing due to action of water. Certiorari is writ for superior court, calling for records. Prescription is a method of obtaining an easement, not title Which of the following formula would an appraiser use to calculate the cubic footage of an attic with a gable roof. a. width x length x height =cubic feet b. width x length divided by 5 x height x 3 =cubic feet c. width x length divided by 4 x height =cubic feet d. width x length divided by 2 x height =cubic feet A gable roof is an A shaped roof width two sloping sides rising to a point (ridge board). Memorize the formula to find cubic footage: Width x Length divided by 2 x Height =cubic feet . A buyer agreed to buy a home for $10,00. She deposited $6,000 into escrow. A lender agreed tp lend 80% of hte appraiser value of $200,000 additionally, the settlement cost to be charged the buyer amount to 3% of hte purchase price. How much additional money must be buyer deposit into escrow prior to closing? a. $25,000 b. $40,000 c. $50,000 d. there is insufficient information to arrive at an answer 1. $200,000 x 80% =$160,000 loan amount 2. $210,000 x $160,000 =$50,000 total downpayment 3. $210,000 x 3% = $6,300 settlement cost 4. $50,000 / $6,300 = $56,300 total of down payment and settlement cost $56,300 -$6,000 (already in escrow)-$50,300 A valid written lease must include a. agreement to let and take delivery and acceptance b. term, consideration and description of the premises c. a landlord and tenant with the legal capacity to enter a binding contract d. all of the above Each of the choises describes a necessary element of a valid lease A prospective buyer obtained a three month option on parcel of real property by paying $300 to the owner . All of the following are true, except a. The option is a unilateral contract b. the optionor is totally restricted by having received 'valuable' consideration with the option c. the option imposes no obligation on the optionee to buy the property; d. the optionee has created a legal interest in the property An option does not create a legal interest in the property for the optionee Option is a right given for a consideration to purchase or lease a property upon specified terms withing specified time A clause in a loan that declares the total unpaid balance due and payable upon default is called a. a fortfeiture clause b. an escalator clause c. an elevation clause d. none of the above d. A clause in a loan that declares the total unpaid balance due and payable upon default is called an 'acceleration' clause In a standard title policy, what is not considered as one of the normal procedures? a. the determination of the amount of insurance coverage b. investigation of title c. a survey of the property d. a review of prior deeds c. A survey of the property is not one of the normal procedures when using a standard coverage policy, The purpose of the Equal Credit Opportunity Act is to a. standardize the methods for obtaining credit b. regulate the total amount of credit to the borrower c. disclosure discrimination in lending based on age, sex, race, marital status, color, religion or national origin d. all of the above d. The purpose of the Equal Credit Opportunity Act is to standardize the methods for obtaining credit, regulate the total amount of credit given tp the borrower and discourage discrimination in lending bases on age, race, sex, marital status, color, religion and national origin A broker acting as agent for a principal has a much authority as a. other parties believe the agent to possess b. the principal actually or ostensibly confers to accept d. he chooses to accept as limited by the State of Limitations b. An agent has as much authority as his principal actually or ostensibly confers upon him. ostensible =acting on behalf of the principal