Real Estate Exam Prep School
A FEW STUDY QUESTIONS—SEE WHAT YOU CAN SCORE
1.All of the following are considered real property except: A. Land. B. Fixtures. C. Leasehold estates. D. Appurtenances. 2.All of the following are considered personal property except: A. Trade fixtures. B. Chose. C. Fruit on a tree that has been sold under contract. D. Covenant. 3.Which of the following is considered an estate of inheritance? A. Life estate. B. Joint tenancy. C. Fee simple absolute. D. Less than freehold estate. 4.All of the following describe a township, except: A. A 36-mile square. B. 36 square miles. C. A 6-mile square. D. A collection of 36 sections. 5.Which of the following best represents market value? A. An appraiser’s written opinion of value. B. Willing buyer and willing seller. C. Sales price. D. Listing price. 6.Which of the following is an example of economic obsolescence? A. A house that lacks modern equipment in the kitchen. B. A one-car garage. C. A house that needs maintenance due to putting it off. D. A toxic waste dump in the neighborhood. 7.What is the value of an apartment building that brings in $72,000 in annual net income, appraised with a 12% capitalization rate? A. $400,000. B. $600,000. C. $800,000. D. $1,000,000. 8.Which of the following is not necessary for a valid deed to transfer title: A. It is executed. B. It is delivered. C. It is accepted. D. It is recorded. 9.Which of the following best describes the trustor? A. Same as the trustee. B. Same as the beneficiary. C. Same as the borrower on the loan. D. Same as the vendor in a land contract. 10.If a listing is signed by only one spouse and the property is community property, the contract is: A. Unenforceable. B. Enforceable. C. Voidable. D. Void.
1.C/Leasehold estates are considered personal property. 2.D/A covenant is an appurtenance item, therefore real property. 3.C/Because the owner can leave the property to heirs. 4.A/A 36-mile square is a square parcel of land, 36 miles on each side. 5.B/This is the very core issue of market value. 6.D/In the neighborhood is the key phrase, outside the property lines. 7.B/$72,000 ÷ 12% = $600,000. 8.D/We record to give constructive notice, not to transfer title. 9.C/Yes, the trustor is the borrower. 10.B/The listing contract requires only one signature for the broker to get paid if he/she performs.
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