WA Fundamentals Final Exam

Which of the following is most likely to be considered a fixture?

A. Draperies
B. lamp
C. Plumbing
D. Washing Machine

C. Plumbing

A life estate will last until:

A. Economic conditions render it unfeasible
B. The death of the grantor
C. the death of the recipient
D. the recipient moves out

C. the death of the recipient

The deed that states that there is

A. Grant Deed
B. Bargain and sale deed
C. Quitclaim deed
D. Special Warranty deed

C Quitclaim deed

A Judgement Lien:

A. Applies only to personal property
B. Applies only to real property
C. takes first lien position
D. When paid off, requires satisfaction of judgment to be recorded to clear the record

D When paid off, requires satisfaction of judgment to be recorded to clear the record

The Police Powers of the government include:

A. Defeasance
B. Foreclosure
C. Lis Pendens
D. Building Codes and zoning regulations

D. Building Codes and Zoning regulations

The Term "Meeting of the Minds" is associated with:
A. Full performance of a contract
B. Offer and acceptance
C. Execution
D tender of an offer

A. Full performance of a contract

Exaggeration about a property's positive characteristics would be considered:
A. Fraud
B. Misrepresentation
C. Overstating
D. Puffing

D Puffing

The seller listed the property for $95,000. Assuming that their listing agreement is typical, the broker would NOT be entitled to a commission if the seller:
A. Rejected a $90,000 offer from a financially qualified buyer
B. Accepted a $90,000 offer from a financially qualified buyer
C. Accepted a $95,000 offer, but his title turned out to be unmarketable
D. Rejected a $95,000 offer from a financially qualified buyer

A. Rejected a $90,000 offer from a financially qualified buyer

A Contract specifies that "time is of the essence." This means that:
A. the seller must fulfill her contractual duties by the date set forth in the contract, but the buyer does not have to
B. the buyer must fulfill her contractual duties by the date set forth in the contract, but the seller does not have to
C. the agent must fulfill his contractual duties by the date set forth in the contract, but the buyer and seller do not have too
D all contractual duties must be fulfilled on or before the date set forth in the contract

D all contractual duties must be fulfilled on or before the date set forth in the contract

Usury laws fix which of the following items?
A. minimum interest rates
B. Maximum interest rates
C. Length of time for repayment of loans
D. Loan to value Ratios

B maximum interest rates

For which of the following people would an adjustable-rate loan not be a good idea?
A. A person about to retire
B. A person planning to refinance after several years
C.A person who will live in the house only a short time
D. A person whose income is expected to go up soon

A person about to retire

An appraiser needs to be state-certified to perform which of the following appraisals?
A. Appraisal of a residence valued at $200,000
B. Appraisal of a residence valued at $500,000
C. Appraisal related to a loan that will be issued by a federally insured lender
D. Appraisal related to an FHA loan

D. Appraisal related to an FHA loan

On a settlement statement, an earnest money deposit that will be held by the brokerage firm until closing is a:
A. Credit to the buyer
B. Credit to the seller
C. Debit (Charge) to the buyer
D. Debit (charge) to the seller

A Credit to the buyer

A licensee hears that a religious group will be opening a commune in a neighborhood. He begins contacting neighbors and telling them about this, encouraging them to list their properties with him before property value declines. This is:

A. Blockbusting
B. Redlining
C. Steering
D. Legal

A. Blockbusting

An investor is interested in purchasing a multi-family dwelling. He would most likely want to look for a:

A. Property that will offer a low rate of return
B. Property where the rents are similar to comparable properties in the same area
c. property with a high vacancy rated.
D rent-control property

B. Property where the rents are similar to comparable properties in the same area

Zoning requirements state that a lot must be at least four times the size of the building located on the lot. An architect draws up plans for a building that is 20,000 square feet. At least how many acres does the lot need to be?

A. 1
B. 2
C. 3
D. 4

B. 2

Test to distinguish a fixture from personal property include all of the following, EXCEPT:
A. Method of attachment
B. Cost of the item
C. intent of the annexor
D. adaptability

B cost of the item

A primary advantage of owning a property in severalty is:
A. Flexibility
B. inheritability
C. Joint Occupancy
D. Shared risk

A. Flexibility

All of the following are requirements for a valid deed, EXCEPT:
A. Acknowledgment
B. Adequate legal description
C. Signature of Grantor
D. Words of conveyance

A acknowledgment

A homeowner has been sharing with a friendly neighbor the use of a driveway that crosses both of their properties. However, the neighbor is about to move out, and the remaining homeowner would like to make sure that she can continue to use the driveway even if the new neighbor is not amenable to that. The homeowner should request a/an:
A. easement
B. encumbrance
C. license
D. profit

A. Easement

A local ordinance states that no sign can extend more than two feet above the roofline. The Morgans want to put a sign on their roof, but the sign is six feet high. To install their sign legally, the Morgans must apply for a:
A. Sign Clearance
B. Nonconforming use permit
C. Variance
D. residual

C. Variance

A property is listed for $275,000. The buyers offer $265,000 and insist that the gourmet six- burner stove remain with the property. When the signed offer is presented to the sellers, the sellers accepts the price, but want to take the stove with them. They cross out the item about the stove, sign the form, and return it to the buyers. Under these circumstances:
A. there is now a valid contract that his been signed by all parties
B. the offer has been invalidated and the buyers will need to begin looking for a new property
C. the sellers can turn around and accept the original offer, if the buyers won't go along with giving up the stove
D. the original offer is terminated, and the sellers have made a counteroffer

D the original offer is terminated, and the sellers have made a counteroffer

A sellers agent, upon meeting with a prospective buyer; becomes concerned that the buyer is unlikely to be financially qualified. The agent should:
A. perform a full examination of the buyers finances
B. refuse to accept that buyers offer
C. relay those concerns to the seller, who will decide
D. withdraw from the listing

C relay those concerns to the seller, who will decide

Net listings are strongly discouraged because they are likely to be unfair to the:
A.broker
B. buyer
C. seller
D. all of the above

C Seller

A purchase and sale agreement is for $150,000, with 80% financing, closing in 30 days with possession at closing, and a rent provision for possession after closing. This is an example of a/an:
A. acceptance
B. contract with contingencies
C. counteroffer
D. unilateral contract

b contract with contingencies

A promissory note that is secured by a mortgage is
A. a defeasance agreement
B. Primary evidence of the debt
C. a guarantee of payment
D. security of the loan

B primary evidence of the debt

Which of the following is an advantage of using private mortgage insurance, from a borrower's perspective?
A. It allows for a smaller downpayment
B. It protects against default
C. It protects the buyers title against other claimants
D. It reimburses a borrower for property damage from problems like fire or flooding.

A . it allows for a smaller downpayment

The market price of a property would be best defined as:
A. the amount paid to obtain the property
B the initial basis, plus capital improvements and minus depreciation
C. the price that the property would likely bring in a sale under normal circumstances
D. the value of the property to a particular owner

A the amount paid to obtain the property

Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15. Bronson already paid the taxes for the entire year, but Hatchers are assuming responsibility for the taxes as of the closing date. The settlement statement will prorate the taxes as a:
A. Credit to the buyer, and debit to the seller
B. debit to the buyer, and credit to the seller
C. debit to the seller
D. credit to the buyer

B debit to the buyer, and credit to the seller

An agent shows his customer, who is Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called:
A. Panic selling
B. steering
C. blockbusting
D. redlining

B steering

A property manager will be paid 3% of a property's annual gross rental income. The rent paid is $24,000 base rent, $12,000 percentage rent; $8,000 maintenance, taxes, and insurance (triple net). The commission amount that the manager will receive is:
A. $ 720
B. $ 1080
C. $ 1,320
D. $ 1,200,000

B $1080

A borrower is purchasing a $300,000 home. She will be using a loan with an LTV of 80%. She will also be total amount of cash that she will need to bring to closing?
A. $7,200
B. $13,200
C. $67,200
D. $69,000

C $67,200

A rectangular parcel of land, starting form the point of beginning, measures 180 feet north, then 90 feet east, then 180 feet south. What is the length and direction of the last side?
A. 90 feet east
B. 90 feet west
C. 180 feet north
D. 180 feet west

B 90 feet west

A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the title, he must file a/an:
A. Adverse possession claim
B. quiet title action
C. quitclaim deed
D. partition suit

B quiet title action

Which of the following actions by a developer would require a zoning variance or a rezone, because it would result in a more intensive use of the land?
A. Deed restrictions prohibiting further subdivisions of individuals lots
B. Deed restriction prohibiting painting houses non-earth-tone colors
C. Fewer outbuildings placed on each lot than allowed by law
D. Increase in number of lots per acre

D. Increase in number of lots per acre

A contract for the purchase and sale of real property does not contain an adequate land description. The agreement is:
A. Unenforceable
B. Valid
C. Void
D. Voidable

A. Unenforceable

In a dual agency, which of the following duties can the parties agree with the agent that they will waive?

A. The duty to disclose conflicts of interest
B. The duty to recommend expert advice on questions outside the agent's knowledge
C. The duty to submit additional offers after acceptance has been reached
D. The duty to take no action that is detrimental or beneficial to one party over the other

C. The duty to submit additional offers after acceptance has been reached

Which of the following is the most commonly used to type of disclosure?

A. Lead-based paint disclosure
B. Seismic hazard disclosure
C. Seller disclosure statement
D. Vacant land disclosure

C. Seller disclosure statement

A mortgage, and the associated mortgage note, are both examples of:

A. Contracts
B. Deeds
C. Non-negotiable instruments
D. Option agreements

A. Contracts

To obtain a 100% loan, with no downpayment, a borrower would most likely need to use a/an:

A. Conventional Loan
B. FHA loan
C. jumbo loan
D. VA loan

D. VA loan

A real estate licensee is performing a competitive market analysis. He locates a comparable property that is slightly older than the subject property. The age of comparable makes it worth $2,000 less. The comparable has a small porch worth $1,000 that the subject property lacks. If the comparable sold for $269,500 recently, what is the estimated value of the subject property?

A. $266,500
B. $268,500
C. $270,500
D. $272,500

C. $270,500

Which of the following is a rule or requirement under the Real Estate Settlement Procedures Act?

A. A service provider may not refer borrowers to affiliated business at all
B. If a service provider gives a kickback to another provider, the provider must disclose this sum to the borrower
C. Private mortgage insurance must be canceled once the borrower's loan-to-value ratio reaches 78% of the purchase price
D. A seller is prohibited from choosing a title insurance company for the buyer

D. A seller is prohibited from choosing a title insurance company for the buyer

The manager of a six-story, 18-unit apartment building carefully screens tenant applications to make sure that tenants who use wheelchairs are assigned to the first floor. This:

A. is allowed if there's no elevator to the upper floors
B. is an example of a property manager making reasonable accommodations
C. Violates the fair housing act
D. violates the civil rights act of 1866

A. is allowed if there's no elevator to the upper-floors

Mavis buys a home with a $500,000 sales price. She will be obtaining a loan for 90% of the property's value. She is paying two discount points, in order to bring the interest rate down from 5% to 4.75%. What is the total amount of cash that she will owe at closing?

A. $9,000
B. $10,000
C. $59,000
D. $60,000

C. $59,000

Mary, in an effort to shore up a rocky marriage, wrote a quitclaim deed that transferred her property to a joint tenancy with her husband (as opposed to creating a tenancy in common). She told her husband about this, but the document was never recorded. They later divorced, by which point the deed had been lost. Does Mary's now ex-husband have a valid claim on the property?

A. No, although if the deed had been recorded it would have provided constructive notice
B. No, because he didn't sign the deed
C. Yes, because a court will consider oral evidence about a contract
D. Yes, because quitclaim deeds do not required the signature of the grantee to transfer title

A. No, although if the deed had been recorded it would have provided constructive notice

Special assessments levied against a property for local improvements, such as streetlights and sidewalks, are computed on the basis of:

A. the market value of the property
B. the benefit the property receives from the improvements
C. a recent appraisal of the property
D. The square footage of the land

B. the benefit the property receives from the improvements

When the parties to a contract put themselves back into the same positions they were in before they entered into the contract, the contract has been:

A. Canceled
B. Rescinded
C. Revoked
D. Performed

B. Rescinded

The buyers ask a listing agent about a rumor they've heard that a sex offender lives in the neighborhood. The agent should:

A. deny it, because he is the sellers agent
B. research the question and report back to the buyers
C. inform the buyers where this kind of information can be verified
D. tell the seller he must disclose this information to the buyers

C. Inform the buyers where this kind of information can be verified

Which of the following statements is true concerning a lead-based paint disclosure?

A. it applies only to purchase of single-family residences, not to condominiums
B. It must include an option for the buyer to waive further inspection
C. It should be given for properties built after 1978
D. tenants must be given a ten-day period to have the property inspected

B. It must include an option for the buyer to waive further inspection

A seller owes more on a loan than the property that secures it is likely to sell for. He approaches the lender about a short sale. He should keep in mind:

A. a short sale could result in a form 1099 from the lender, or a deficiency judgment
B. his credit score will be protected
C. he will probably be able to obtain financing for another home purchase right away
D. there are not likely to be any negative consequences

A. a short sale could result in a form 1099 from the lender, or a deficiency judgment

When using the replacement cost approach to estimate the value of a home that is three years old, the appraiser should do which of the following?

A. Capitalize the net income
B. Determine replacement cost and then deduct for depreciation
C. Adjust for inflation that has occurred since the sale of any comparable properties
D. Estimate the cost, on the basis of current prices, of reproducing a replica home with the same or closely similar materials

B. Determine replacement cost and then deduct the depreciation

Which of the following is the best examples of non-discriminatory language, according to HUD's guidelines for the Fair Housing Act?

A. Female seeking female roommate
B. Nice neighborhood for families with kids
C. No children please
D. Walking distances to great Catholic School

A. Female seeking female roommate

Through careful management, a property manager increases an apartment building's monthly income of $3,000 by an additional $500/month. Assuming a cap rate of 8%, what is the increase in the buildings value?

A. 37,500
B. $43,750
C. $75,000
D. $525,000

C. $75,000

A condensed history of the ownership of a property is called a/an:

A. Abstract of title
B. chain of title
C. Lis pendens
D. title insurance policy

A. Abstract of title

Of the following types of contracts, which one is a unilateral contract?

A. Escrow instructions
B. Exclusive right to sell listing
C. Lease
D. Option

D. Option

Which of the following is the best definition of a material fact?

A. A defect that could affect the buyers possibility of receiving clear title
B. A defect that is not readily apparent or visible
C. Knowledge that can be discovered only through physical inspection of the property
D. Knowledge that would affect a buyer's decision whether or not to buy

D. Knowledge that would affect a buyer's decision whether or not to buy

A transaction will include a home warranty. The seller's agent should find out:

A. a list of repair persons in the area who will honor the plan
B. Whether coverage includes flood and earthquake damage
C. which insurer will provide the coverage
D. Which party will be responsible for the one-time premium

D. which party will be responsible for the one-time premium

A lender agrees that a seller who owes $400,000 on a mortgage that is in default may list the property at $350,000, which is the current market value of the property. This type of transaction is known as a:

A. deed in lieu
B. Foreclosure
C. Joan workout
D. Short sale

D. Short sale

A couple in their 70's with no liens on their home would like some extra income, but don't want to make monthly payments. What kind of loan might a lender offer them?

A. a reverse equity loan, since they are over 62 and have sufficient equity in their home
B. A reverse equity loan, since they are over the age of 35
C. A reverse equity loan, but the couple will need to make monthly payments
D. None; a lender will probably refuse to lend to anyone over the age of 62

A. a reverse equity loan, since they are over 62 and have sufficient equity in their home

An investor looks at a property listed for $150,000, with a monthly net operating income of $1,000. He decides instead to to offer $120,000. What kind of income approach analysis would he have used to arrive at the conclusion?

A. Capitalization rate
B. Competitive market analysis
C. Gross rent multiple
D. Initial basis

A. Capitalization rate

One of the provisions of the Housing for Older Persons Act:

A. creates a cause of action for lawsuits concerning misrepresentation of the nature of a 55+ property
B. Exempts grandparents who will have grandchildren visiting
C. requires that facilities and services for elderly persons must be available in housing that is specifically for persons 55 or older
D. Requires that in qualified projects, at least 80% of the units must be occupied by persons 55 years or older

D. Requires that in qualified projects, at least 80% of the units must be occupied by persons 55 years or older

Bob's property has a fair market value of $190,000. It is in a county where properties are assessed at 50% of value, and the tax rate is $55 per $1000 of assessed value. What's Bob's annual property tax?

A. $2,612.50
B. $5,225.00
C. $7,837.50
D. $10,450.00

B. $5,225.00

Martha gave Hannah the right to purchase her vacant lot for $65,000. Hannah paid Martha $1,200 for this right. Hannah is the:

A. Mortgagor
B. Mortgagee
C. Optionor
D. Optionee

D. Optionee

A seller complains that the seller's agent is showing other properties to buyers that compete with the seller's property. Which of the following is true?

A. Seller's agent is breaching the duty of loyalty to the seller
B. Seller's agent is not breaching the duty of loyalty
C. Seller's agent has created a conflict of interest
D. Seller's agent may do so, but only with the seller's express permission

B. Seller's agent is not breaching the duty of loyalty

A buyer would be protected from risk of loss due to a failed heating system through:

A. an agency disclosure statement
B. a home protection plan
C. Mortgage insurance
D. title insurance

B. A home protection plan

The Thomspons, a retired couple, need more income. Their lender offers a type of loan in which the lender will send the couple a monthly check for as long as the couple lives on the property, in exchange for a lien against the equity in their property. The lender is referring to a/an:

A. Shared-appreciation mortgage
B. deed in lieu
C. open-end mortgage
D. reverse mortgage

D. Reverse mortgage

Maya and Andrew are real estate agents
who work for competing brokerages. They
don't like a new discount broker and decide
together not to show any of the new
broker's listings. This is a violation of the
'Sherman Act because it's:

A. a group boycott
B. a tie-in arrangement
C. market allocation
D. price fixing

A. a group boycott

In an option:

A. no consideration is required
B. the seller is the optionee and the buyer is the optionor
C. the seller must apply the option money to the purchase price if the optionee exercises her option
D. the option agreement must clearly state all the terms and conditions of the sale

D. the option agreement must clearly state all the terms and conditions of the sale

A licensee takes a listing from his sister. He should:

A. arrange for a straw client to take his sister place for legal purposes
B. disclose the relationship if acting as a dual agent
C. keep the relationship a secret
D. not be able to legally take this listing

B. disclose the relationship if acting as a dual agent

An agent sends faxes to clients highlighting prospective properties that they might like. The faxes should always include the:

A. Address of each property
B. agents license number
C. brokerage phone number
D. instructions on how to opt-out of receiving more faxes

D. instructions on how to opt out of receiving faxes.

A letter of intent:

A. Contains all terms and conditions of a contractual agreement
B. is generally binding
C. is used regularly in small residential transactions
D. Sets out basics prior to negotiation

D. sets out basics prior to negotiation

Which of the following instances is an example of an agency relationship terminated by operation of law?

A. A broker renounces the agency
B. A client revokes the agency
C. Broker and client mutually agree to end the agency
D. The subject property a single- family residence, burns down

D. The subject property a single-family residence, burns down

A broker will be working for a firm as an independent contractor. The firm must provide the broker with:

A. Advertising materials
B. an independent contractor agreement
C. business cards
D. insurance coverage

B. an independent contractor agreement

A survey has been completed, and stakes have been placed marking off the property. The survey can be used to:

A. Construct fences and driveways
B. Measure soil stability
C. determine freehold interests
D. Verify known liens

A. Construct fences and driveways

A tenancy in which the tenant is in possession with the permission of the landlord , but there is no definite rental period or duration of possession, is called a/am:

A. estate in remainder
B. estate for years
C. periodic estate
D. estate at will

D. estate at will

Ned and Carla buy a house that is listed at $105,000; their offer for $5,000 less than that is is accepted. They obtain a loan with an 80% loan-to-value ratio. The loan is for 30 years with a 5.5% interest rate. Taxes for the year are $4,000; insurance for the year is $800. Calculate their monthly PITI payment. Be sure to use the amortization table.

A. $454
B. $467
C. $854
D. $867

C. $854

A plaintiff files a lawsuit involving a property and also flies a separate document intended to provide notice of the lawsuit. This recorded notice of a pending legal action is called a/an:

A. abstract of judgment
B. petition of alienation
C. writ of execution
D. lis pendens

D. lis pendens

An increasingly common land use patterns allows for subdivisions with smaller lot sizes and little or no setback and sideyard requirements while keeping the same density ratios. These are known as:

A. Horizontal property divisions
B. downzoning
C. planned unit developments
D. spot zoning

C. planned unit developments

A and B sign a rental agreement in which A agrees to lease her property to B in exchange for rent. This contract is:

A. bilateral
B. Implied
C. unilateral
D. Voidable

A. bilateral

A real estate agent has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the agent to manage all aspects of those properties during that time, including advertising and leasing. The real estate agent will be:

General Agent

At closing, a sale doesn't go through because the seller's anticipated transfer to another city gets suddenly postponed, and the seller no longer wants to sell. Does the seller owe the listing agent a commission in this situation?

A. No, because the sale didn't close
B. No, because this was a circumstance outside the seller's control
C. Yes, because the seller won't provide marketable title, which is considered a default
D. Yes, unless the buyer and seller agreed to mutually cancel the transaction

C. Yes, because the seller won't provide marketable title, which is considered a default

Legally, how much earnest money must be submitted with a valid purchase and sale agreement?

A. 1% of the purchase price
B. 3% of the purchase price
C. 5% of the purchase price; but the amount over 3% cannot be retained as liquidated damages.
D. No earnest money is required

D. no earnest money is required

The mortgagee assigns its interest and the assignee records the assignment. The mortgagor now needs to make payments to the:

A. assignee
B. assignor
C. beneficiary
D. mortgagee

A. assignee

A buyer is unfamiliar with the concept of discount points and asks a licensee to explain. The licensee responds, "Discount points are used to replace funds that are being held by the Federal Reserve, so that more funds are available to lend. "Is the description correct?

A. No, discount points are used to increase the yield for leaders who will sell the loans on the secondary market
B. No, discount points are used to pay brokers' commissions
C. Yes, banks hold discount points in escrow until sufficient funds have been accumulated to make more loans
D. Yes, discount points lower interest rates, making loans more affordable for everyone

A. No, discount points are used to increase the yield for lenders who will sell the loans on the secondary market

A $4,500 earnest money check bounces because of insufficient funds. The first thing the broker should do is:

A. notify escrow to charge this amount, plus the bounced check fee, to the buyer
B. Notify the borrower
C. Notify the principals
D. Write a personal check for $4,500 to cover the shortage

C. Notify the principals

A percolation test will examine the:

A. likelihood of landslides or subsidence
B. presence of toxic contamination in soil
C. roofing material's ability to repel rain
D. soil ability to absorb and retain water

D. soil ability to absorb and retain water

A seller tells a real estate agent that she has lived in the neighborhood for a long time and would like to be selective about who buys her house; she would like the agent to tell her race and nationality of all prospective buyers. How should the agent respond?

A. Agree to it, but avoid using any discriminatory advertising
B. Agree to it, as the agent owes the seller the duty of loyalty
C. End her agency with the seller, as the agent's duty is to find the lucrative offer for the seller regardless of race
D. End her agency with the seller, as it would be a violation of the federal Fair Housing Act

D. End her agency with the seller, as it would be a violated of the federal Fair Housing Act

A property manager bases the operating budget on:

A. rental rates
B. the rental market
C. anticipated expenses and revenue
D. state landlord-tenant law

C. anticipated expenses and revenue

A parcel measures 198 feet by 330 feet. It sold for $30,000. What was the price per acre?

A. $294
B. $20,000
C. $45,000
D. $2,500,000

B. $20,000

Meridians and base lines relate to the:

A. lot and block method
B. metes and bounds method
C. recorded map method
D. rectangular survey method

D. rectangular survey method

Which of the following would characterize a tenancy in common?

A. Only available to married persons
B. Requirement of equal interests
C. Right of survivorship
D. tenants can will a partial interest in the property

D. Tenants can will a partial interest in the property

A buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. The buyer later finds out that the seller is only a co-owner. has a covenant in the warranty deed been violated?

A. No, the only covenant is a general warranty deed promises that the previous owner didn't encumber the property
B. No, the principle of caveat emptor controls matters concerning a deed
C. Yes, there is a covenant providing equitable title
D. Yes, there is a covenant providing marketable title

D. Yes there is a covenant providing marketable title

K buys a piece of landlocked property from L on the condition that L provide an easement across the property for ingress and egress. The easement isn't recorded. K later sells the property. Is the easement still valid for the owner?

A. No, because it wasn't recorded
B. No, because it wasn't mentioned in the deed
C. Yes, because an easement of this type runs with the land, rather than belonging to an individual
D. Yes, because K is the servant tenant and L is the dominant tenant

C. Yes, because an easement of this type runs with the land, rather than belonging to an individual

A licensee is helping her buyer purchase some property. The buyer would like to make an offer on a storage site for a heating oil company. The Licensee should advise her buyer to:

A. Consult with an environmental expert
B. request a spot zone
C. Seek tentative approval from the Environmental Protection Agency
D. use a condemnation clause in the offer

A. Consult with an environmental expert

When can a minor enter into a binding contract?

A. If a guardian co-signs
B. If the contract is witnessed
C. If the minor is at least 16 years of age
D. Never

A. If a guardian co-signs

Late on a Friday afternoon, an agent receives an offer on a property that she has listed, for 10k$ less than the listed price. The sellers will be away all weekend. The agent should:

A. discard the offer since it is not for the desired amount
B. try to get the offer to them as soon as possible on Friday
C. wait in the hope that a full-price offer comes in
D. have and unlicensed assistant present the offer

B. try to get the offer to them as soon as possible on friday

Gail gives ABC Realty a listing that stipulates it is the only real estate firm authorized to list her home. At the same time, she insists on including a provision that would allow her to sell the home herself without paying a commission to ABC. Which of the following describes the kind of listing she has created?

A. Non-exclusive listing
B. Exclusive right to sell listing
C. Exclusive open listing
D. Exclusive agency listing

D. Exclusive agency listing

A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit $5,000 in earnest money within two business days after mutual acceptance. The offer is contingent on results of a soil feasibility report. On May 5 the seller accepts the offer. On May 11 the soil report is ordered. On May 17 the soil feasibility report comes back and is approved by the buyer. By what date does the earnest money need to be deposited?

A. May 4
B. May 7
C. May 13
D. May 19

B. May 7

A contract for deed wouldn't be a good idea if the seller's mortgage has a/an:

A. acceleration clause
B. alienation clause
C. defeasance clause
D. subordination clause

B. alienation clause

A buyer is getting a loan to purchase a five-arce apple farm with no residence on it. The Truth in Lending Act requires:

A. a three-day rescission period if the borrower changes her mind
B. disclosure of all settlements charges on a loan estimate form
C. disclosure of the finance charge
D. no disclosure, because the land is agricultural

D. no disclosure, because the land is agricultural