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REAL ESTATE LAW EXAM TEST
BANK 2024 300+ QUESTIONS AND
CORRECT ANSWERS (PROFESSOR
VERIFIED) | ALREADY GRADED A+ |
LATEST EDITION
Which payment mortgage permits the borrower to pay lower monthly payments for the first few years of the loan and larger payments for the remainder of the term? ------CORRECT ANSWER------------Graduated payment mortgage Fannie Mae and Freddie Mac are now in better financial condition, they still remain in conservatorship and pay dividends to the U.S. Treasury, which help repay the federal aid provided to them during the bailout. True or false ------CORRECT ANSWER------------true Which of the following is considered a main source of short-term loans? ---- --CORRECT ANSWER------------Commercial banks In a variable-rate loan, the interest rate fluctuates during the term of the loan based on an index, typically a Treasury bond index. True False ------CORRECT ANSWER------------true The FHA insures loans made up to 85 percent of the loan-to-value ratio of the secured property. True False ------CORRECT ANSWER------------false
With a conventional loan, payment of the debt depends solely on the borrower's ability to pay and the value of the security provided by the mortgage. true or false ------CORRECT ANSWER------------true Construction loans tend to use which method of payment? ------CORRECT ANSWER------------Term loan In a limited partnership, losses are passed through to the partners and can be deducted on their individual tax returns. true or false ------CORRECT ANSWER------------true Paralegals are not legally qualified to draft a deed. true or false ------ CORRECT ANSWER------------false Marco, Liam, and Michel are co-owners of an apartment building in a tenancy in common. Two of the windows in the apartment building are damaged in a hail storm, and Marco pays a window company to replace them. Marco's right to be reimbursed two-thirds of this cost by Liam and Michel is called ------CORRECT ANSWER------------contribution Co-ownership of real property does not in and of itself make the owners partners for one another. true or false ------CORRECT ANSWER------------ true
An interpretation of the tax laws prohibits a tenant in common's ownership interest in one property to be exchanged or transferred for an interest in another property as a tax-free exchange. true or false ------CORRECT ANSWER------------false Decisions of trial courts are recorded and published, and are considered precedent for future decisions. True or False? ------CORRECT ANSWER--- ---------Flase Skills used by paralegals in real estate practice include? ------CORRECT ANSWER------------preparation of legal documents. The air space immediately above the surface of privately owned land is owned by the government. True or False? ------CORRECT ANSWER-------- ----False Which of these is considered real property? ------CORRECT ANSWER------ ------An acre of land Which of the following is an ownership transfer that takes place upon the death of the previous owner? ------CORRECT ANSWER------------Devise Intangible personal property includes things such as televisions, air conditioners, and dishwashers. True or False? ------CORRECT ANSWER-- ----------False
Under the feudal system, vassals paid money to the lord in exchange for the right to live on and use a portion of the lord's land. True or False? ------ CORRECT ANSWER------------True Which of these is considered intangible personal property? ------CORRECT ANSWER------------A copyright A deed transfers ownership only to the property described in the deed. True or False? ------CORRECT ANSWER------------True Which is the highest and best kind of estate an owner can have? ------ CORRECT ANSWER------------Fee simple absolute Treatises are practice books published by state bar associations. True or False? ------CORRECT ANSWER------------False The rules on adverse possession ------CORRECT ANSWER------------vary from state to state. No special language is required to create a fee simple absolute. True or False? ------CORRECT ANSWER------------True Soybeans produced by labor are considered real property. True or False? - -----CORRECT ANSWER------------False
Legal blogs are also called blawgs. true or false ------CORRECT ANSWER- -----------true Most states interpret a conveyance without limitation as transferring a fee simple determinable to the grantee. True or false? ------CORRECT ANSWER------------true Rose bushes that grow in soil are considered real property. True or false? - -----CORRECT ANSWER------------true mortgage loan ------CORRECT ANSWER------------Definition:Loan secured by real property. Fannie Mae and Freddie Mac are privately owned corporations organized to provide a secondary market for single-family and multifamily residential loans. True or false ------CORRECT ANSWER------------true What is the limit on the loan amount the VA will guarantee? ------CORRECT ANSWER------------25 percent of the loan amount A graduated payment mortgage is a partially amortized loan. true or false -- ----CORRECT ANSWER------------false Commercial banks tend to keep mortgage loans in their portfolio through maturity. True or false ------CORRECT ANSWER------------false
Depositors' accounts with commercial banks are insured by ------ CORRECT ANSWER------------FDIC Thrifts that survived the savings and loan collapse in the 1980s and 1990s were converted into federal savings banks. true or false ------CORRECT ANSWER------------true The primary market consists of lenders who originate mortgage loans for the purpose of selling the loans to investors. true or false ------CORRECT ANSWER------------true Mortgage banking companies originate mortgage loans for insurance companies, commercial banks, pension funds, savings banks, and other investors. True or false ------CORRECT ANSWER------------true The monthly payments on a construction loan are amortized. true or false -- ----CORRECT ANSWER------------false The housing recession and mortgage crisis that started in 2007 caused an increased number of loan defaults and financial solvency of banks. true or false ------CORRECT ANSWER------------true In most cases, the Small Business Administration (SBA) ------CORRECT ANSWER------------guarantees loans made by private lending institutions approved by the SBA.
Title for co-owners in a tenancy in common must arise at the same time or by the same instrument. true or false ------CORRECT ANSWER------------ fasle To be considered a legal entity, a corporation must have more than one shareholder. true or false ------CORRECT ANSWER------------false An antenuptial agreement is designed to resolve disputes of property ownership at the time of divorce. true or false ------CORRECT ANSWER---- --------true What is the first item from the following to appear on an agreement of cotenancy? ------CORRECT ANSWER------------Names and addresses of the owners Articles of incorporation must describe the business purpose of the corporation. true or false ------CORRECT ANSWER------------true A limited liability company offers the tax advantages of a partnership and the limited liability of a corporation. true or false ------CORRECT ANSWER- -----------true Most cotenancy agreements provide a procedure to prevent, or at least make difficult, the sale of an undivided interest in the property to a stranger. true or false ------CORRECT ANSWER------------true
Indicate whether the statement is true or false. Under a joint tenancy with right of survivorship, each owner owns an equal and undivided interest in the whole of the real property ------CORRECT ANSWER------------true The right of curtesy applies only to ------CORRECT ANSWER------------a widower. All states have adopted the Uniform Partnership Act. true or false ------ CORRECT ANSWER------------false Formal legal documents must be filed with the secretary of state to form a general partnership. true or false ------CORRECT ANSWER------------false Limited partners and general partners are equally liable for the debts and obligations of a limited partnership. true or false ------CORRECT ANSWER- -----------false A metes and bounds description usually begins with an introduction that first ------CORRECT ANSWER------------locates the land in a general part of the state A principal meridian is identified by its distance from ------CORRECT ANSWER------------the Greenwich meridian.
When reviewing a survey, the legal assistant should verify that it ------ CORRECT ANSWER------------identifies any easements. A survey that locates all physical improvements on the land in relation to the boundary lines is called a(n) ------CORRECT ANSWER------------as-built survey. A line running northeasterly at an interior angle of 60°14'30" is not the same thing as a line running north 60°14'30". true or false ------CORRECT ANSWER------------false The distance of a call is most often measured in rods and chains. true or false? ------CORRECT ANSWER------------flase Indicate whether the statement is true or false. A boundary survey locates the boundaries of the land in question and provides a description of the land. ------CORRECT ANSWER------------true When a legal description involves a curve, the land surveyor should give all of the following information about each curve, EXCEPT ------CORRECT ANSWER------------the identification of the quadrants. A beginning point on a metes and bounds description can be any point on a parcel of land. true or false ------CORRECT ANSWER------------false
Which of the following is NOT used when identifying a township square? --- ---CORRECT ANSWER------------The distance from the closest correction line A rod is longer than a chain. true or false ------CORRECT ANSWER---------- --false A survey should show all adjacent streets, roads, and highways and indicate whether the accesses are public or private. true or false ------ CORRECT ANSWER------------true Surveys are prepared by ------CORRECT ANSWER------------land surveyor A metes and bounds description should both begin and end at the beginning point. true or false ------CORRECT ANSWER------------true Most surveyors prepare surveys based on standards developed jointly by the state legislature and surveyors true or false ------CORRECT ANSWER-- ----------false Generally, when reviewing a survey, it is not acceptable to write or mark on the survey. true or false ------CORRECT ANSWER------------false The sections in a township square are numbered beginning in which corner? ------CORRECT ANSWER------------northeast
public zoning regulations true or false ------CORRECT ANSWER------------ true Mechanics' and materialmen's liens attach to real property but do not attach to improvements to the property. true or false ------CORRECT ANSWER------------false Which of the following is generally NOT included on a claim or notice of lien in regard to a mechanics' or materialmen's lien? ------CORRECT ANSWER- -----------Notarized signature of the owner of the property Most city governments can ------CORRECT ANSWER------------create subdivision laws The right granted by a property owner to a nonowner to use real property for a special purpose is called a(n) ------CORRECT ANSWER------------ easement Both federal and state laws protect the use and development of wetlands. true or false ------CORRECT ANSWER------------true The Clean Water Act gives state governments the power to impose fines on people who contaminate water sources. true or false ------CORRECT ANSWER------------false
Generally, the identification of wetlands is determined by ------CORRECT ANSWER------------the U.S. Army Corps of Engineers. Building codes regulate which methods and materials may be used in the construction of improvements. true or false ------CORRECT ANSWER------- -----true The government may levy special assessments against real property owners for the costs of all BUT which of the following? ------CORRECT ANSWER------------Demolishing an uninhabitable structure on adjacent property The priority of a mechanics' or materialmen's lien attaches from the date the claim of lien is filed. true or false ------CORRECT ANSWER------------ false A property owner does not have the right to appeal a zoning decision or classification to a court of law. true or false ------CORRECT ANSWER-------- ----false The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is also known as "Superfund." true or false ------CORRECT ANSWER------------true A judgment lien remains a lien on real property until it has been paid or expires by passage of time. true or false ------CORRECT ANSWER-----------
Easements cannot be terminated by a tax foreclosure of the servient estate. True or false ------CORRECT ANSWER------------fasle Implied easements are appurtenant easements. true or false ------ CORRECT ANSWER------------false Often a survey may be required to determine the exact location of an easement on the property. true or false ------CORRECT ANSWER------------ true How is an appurtenant easement passed on when the dominant tenement is sold? ------CORRECT ANSWER------------Automatically The land on which an easement is located is called the dominant easement. true or false ------CORRECT ANSWER------------false Utility easements are easements in gross true or false ------CORRECT ANSWER------------true Which of the following is NOT one of the four methods by which an easement may be created? ------CORRECT ANSWER------------Inference A license is a consensual privilege. True or false ------CORRECT ANSWER------------true
For which of the following purposes would a blanket easement most likely be granted? ------CORRECT ANSWER------------An easement allowing a utility company to install and maintain service lines A license is a(n) ------CORRECT ANSWER------------revocable privilege Indicate whether the statement is true or false. An easement is considered an encumbrance on the real property on which the easement is located. ------CORRECT ANSWER------------true An implied license is revocable at any time. true or false ------CORRECT ANSWER------------true Easement by necessity grants to a landowner a quasi-private right to condemn an adjoining owner's land for purposes of acquiring an access easement to a public street or road. true or false ------CORRECT ANSWER------------true A person who acquires a prescriptive easement may become an owner of the real property through adverse possession. true or false ------CORRECT ANSWER------------false Prescriptive easements are created ------CORRECT ANSWER------------by use of an express grant
