Real Estate Sales License Exam - Rhode Island Questions
With Accurate Solutions
Deed of Trust Loan - accurate answers-Deed wherein legal title in real
property is transferred to a trustee, which holds it as security for a loan
Factors influencing real estate supply - accurate answers-- Labor force
availability
- Construction and material costs
- Government controls
- Govt. financial policies
Factors influencing real estate demand - accurate answers-- Population
- Demographics
- Employment and wage levels
Realtor - accurate answers-Member of the National Association of Realtors
Schools are part of what real estate classification - accurate answers-Special
purpose
Uses of Real Property - accurate answers-- Residential
- Commercial
- Mixed-Use
- Industrial
- Special Purpose
What is not a factor in how quickly the forces of supply and demand work -
accurate answers-Pricing
Improvements do not include: - accurate answers-- Shrubbery
- Trees
- Lawns
Real property includes: - accurate answers-- Interests
- Benefits
- Rights that are automatically included in the ownership of land and real
estate
,Bundle of Legal Rights, as part of Real Property, include: - accurate answers-
Right of:
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
Title is: - accurate answers-- Right to ownership
- Bundle of legal rights
- Evidence of ownership provided by a deed
Appurtenance - accurate answers-Right or privilege associated with real
property, e.g.
- parking space
- easement
- water rights
Emblements (personal property) - accurate answers-Annual plantings (not
perennials) or crops or grains
Severance (personal property) - accurate answers-Can be separated from the
land, e.g. apple being picked from the tree
Attachment or Annexation (personal property in to real property) - accurate
answers-e.g. cement, stone, and sand mixed in to concrete to make a sidewalk
Fixture - accurate answers-Part of real property. Attached to the land or
building
Legal tests for a fixture - accurate answers-- not easily removable (means of
annexation)
- considered a permanent addition (adaptation to real estate)
- agreement of the parties (in the offer to purchase)
Trade fixtures - accurate answers-property attached to the structure but used
in the course of business. Personal property or Real Property.
,Accession - accurate answers-Trade fixtures that are not removed and become
part of the real property being purchased
Economic characteristics of real estate - accurate answers-- Scarcity
- Improvements
- Permanence of investment
- Location
Physical characteristics of real estate - accurate answers-- Immobility
- Indestructibility
- Nonhomogeneity or uniqueness
Chattels - accurate answers-Personal property
Personalty - accurate answers-any tangible asset that can be moved (not fixed
to land)
Types of Housing - accurate answers-- Single-family homes
- Apartment complexes
- Condominiums
- Cooperatives
- Planned Unit Developments (PUDs)
- Mixed-Use Developments (MUDs)
- Modular homes
- Mobile homes
- Time shares
PITI - accurate answers-- Principal
- Interest
- Taxes
- Insurance
Loan programs with more flexible terms for those with lower credit ratings -
accurate answers-- FHA (Federal Housing Administration)
- VA (Dept. of Veterans Affairs)
Investment considerations - accurate answers-- Appreciation
- Equity increase with an amortized loan
- Tax deductions
, - Capital gains taxation exclusion (principal residence)
- Tax-free withdrawals from an IRA for downpayment
Co-insurance clause - accurate answers-Homeowner to maintain insurance
equal to 80% of replacement costs
Comprehensive Loss Underwriting Exchange (CLUE) - accurate answers-
Database of insurance claim history
National Flood Insurance Act of 1968 - accurate answers-- Subsidizes flood
insurance
- Administered by FEMA (Federal Emergency Management Agency)
Planned Unit Development (PUD) - accurate answers-master planned
communities with single family homes
Does a homeowner's insurance policy typically cover theft? - accurate
answers-Yes, but not for a person injured in the home
Lender's rule of thumb on % of income for PITI - accurate answers-28%
Tax exclusion on a primary residence - accurate answers-- $500,000 if filing
jointly
- $250,000 for a single filer
Basic form of homeowner's policy covers: - accurate answers-theft, smoke
damage, damage from fire, glass breakage, riot, vandalism
Not covered under the homeowner's basic policy - accurate answers-frozen
pipes or flooding
A bill of sale is used to transfer: - accurate answers-Personal property
Agency - accurate answers-Fiduciary relationship in which the Agent is held in
a position of special trust and confidence by the principal
Principal - accurate answers-Client
Agent - accurate answers-Hired by Principal to act on their behalf
With Accurate Solutions
Deed of Trust Loan - accurate answers-Deed wherein legal title in real
property is transferred to a trustee, which holds it as security for a loan
Factors influencing real estate supply - accurate answers-- Labor force
availability
- Construction and material costs
- Government controls
- Govt. financial policies
Factors influencing real estate demand - accurate answers-- Population
- Demographics
- Employment and wage levels
Realtor - accurate answers-Member of the National Association of Realtors
Schools are part of what real estate classification - accurate answers-Special
purpose
Uses of Real Property - accurate answers-- Residential
- Commercial
- Mixed-Use
- Industrial
- Special Purpose
What is not a factor in how quickly the forces of supply and demand work -
accurate answers-Pricing
Improvements do not include: - accurate answers-- Shrubbery
- Trees
- Lawns
Real property includes: - accurate answers-- Interests
- Benefits
- Rights that are automatically included in the ownership of land and real
estate
,Bundle of Legal Rights, as part of Real Property, include: - accurate answers-
Right of:
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
Title is: - accurate answers-- Right to ownership
- Bundle of legal rights
- Evidence of ownership provided by a deed
Appurtenance - accurate answers-Right or privilege associated with real
property, e.g.
- parking space
- easement
- water rights
Emblements (personal property) - accurate answers-Annual plantings (not
perennials) or crops or grains
Severance (personal property) - accurate answers-Can be separated from the
land, e.g. apple being picked from the tree
Attachment or Annexation (personal property in to real property) - accurate
answers-e.g. cement, stone, and sand mixed in to concrete to make a sidewalk
Fixture - accurate answers-Part of real property. Attached to the land or
building
Legal tests for a fixture - accurate answers-- not easily removable (means of
annexation)
- considered a permanent addition (adaptation to real estate)
- agreement of the parties (in the offer to purchase)
Trade fixtures - accurate answers-property attached to the structure but used
in the course of business. Personal property or Real Property.
,Accession - accurate answers-Trade fixtures that are not removed and become
part of the real property being purchased
Economic characteristics of real estate - accurate answers-- Scarcity
- Improvements
- Permanence of investment
- Location
Physical characteristics of real estate - accurate answers-- Immobility
- Indestructibility
- Nonhomogeneity or uniqueness
Chattels - accurate answers-Personal property
Personalty - accurate answers-any tangible asset that can be moved (not fixed
to land)
Types of Housing - accurate answers-- Single-family homes
- Apartment complexes
- Condominiums
- Cooperatives
- Planned Unit Developments (PUDs)
- Mixed-Use Developments (MUDs)
- Modular homes
- Mobile homes
- Time shares
PITI - accurate answers-- Principal
- Interest
- Taxes
- Insurance
Loan programs with more flexible terms for those with lower credit ratings -
accurate answers-- FHA (Federal Housing Administration)
- VA (Dept. of Veterans Affairs)
Investment considerations - accurate answers-- Appreciation
- Equity increase with an amortized loan
- Tax deductions
, - Capital gains taxation exclusion (principal residence)
- Tax-free withdrawals from an IRA for downpayment
Co-insurance clause - accurate answers-Homeowner to maintain insurance
equal to 80% of replacement costs
Comprehensive Loss Underwriting Exchange (CLUE) - accurate answers-
Database of insurance claim history
National Flood Insurance Act of 1968 - accurate answers-- Subsidizes flood
insurance
- Administered by FEMA (Federal Emergency Management Agency)
Planned Unit Development (PUD) - accurate answers-master planned
communities with single family homes
Does a homeowner's insurance policy typically cover theft? - accurate
answers-Yes, but not for a person injured in the home
Lender's rule of thumb on % of income for PITI - accurate answers-28%
Tax exclusion on a primary residence - accurate answers-- $500,000 if filing
jointly
- $250,000 for a single filer
Basic form of homeowner's policy covers: - accurate answers-theft, smoke
damage, damage from fire, glass breakage, riot, vandalism
Not covered under the homeowner's basic policy - accurate answers-frozen
pipes or flooding
A bill of sale is used to transfer: - accurate answers-Personal property
Agency - accurate answers-Fiduciary relationship in which the Agent is held in
a position of special trust and confidence by the principal
Principal - accurate answers-Client
Agent - accurate answers-Hired by Principal to act on their behalf
