Real Estate Salesperson Exam Prep National

Ad Valorem property taxes are base on what?

Assessed Value

This is not an example of police power:

Condemnation of property

Wetland would come under which control?

Police Power

Water table is defined as?

The level at which water will be located

A property owner erected a block a wall on the property. The wall became real property by which?

Annexation

The adding of territory is called?

Annexation

An economic characteristic of real estate would be:

Modification

The purpose of zoning is?

Promote health and safety of a community

Which tenancy would allow survivorship?

Joint Tenancy

A property is held in joint tenancy and one of the parties dies testate?

Goes to the joint tenant survivor

Which lease escalates?

Index

A clause in a lease that would allow adjustments of payments either up or dawn would be called:

An escalator

If a party is granted a property upon the condition that a certain use will continue in the cuter, this would be called?

Defeasible fee

When a grantor retains a future interest, this is called

Reversion

A, B and C own property as unequal interest in a piece of land; they own it as

Tenancy in common

A lease and life estate have which words in common?

Reversion

When a property is rented for only one month, this is called tenancy:

For years

Of the unities required for joint tenancy, which one is necessary for tenancy in common?

Possession

In a lease, the lessor:

Demise his interest

An easement in gross is considered

personal right

This is not a freehold estate

Fee Determinable

A graduated lease would mean that:

rents increase as tenants are procured

Fee simple determinable estate

title reverts back to the original grantor

When a person receives real estate through a will, this is called:

Devise

Which deed contains the warranty forever?

General Warranty

What would be an exception to an ALTA policy?

Zoning

The ALTA policy would not protect the lender against

Changes in zoning ordinances

Habendum

Clause "To have and to hold" found in deeds;
part of the words of conveyance

What is the purpose of a trustee?

Foreclose in a deed of trust

A loan you obtain in installments and payoff at maturity is called:

Construction

A surety bond is used when:

Contractor fails to complete a job

When the trust deed has been paid in full, the defeasance clause states that the full deed of reconveyance be issued by the:

Trustee

Who signs the estoppel cert?

Borrower/lessee

A mortgage that contains release clauses is called:

Blanket

If the mortgagor has the right to obtain legal title aftr payment in full, this is referred to as a:

Title theory

When the note and security instrument are in one document, this is:

Land Contract

When a loan is sold from one lender to another lender, it is:

Assigned

In the sale of a mortgage document, what is the relationship of the parties?

Assignor to assignee

When a wraparound is created, who is responsible for the underlying loans?

Vendor

Low income loans are usually purchased by

GNMA

The right of the mortgagor to regain title is called:

Redemption

The buyer has an investment that has a feather of a "pass through certificate", this investment is most likely a:

Ginnie Mae security

Which agency guarantees loans?

GNMA

What is Federal National Mortgage Association?

Government related private agency

Personal property given to make up the difference in equity is:

Boot

REIT

Real Estate Investment Trust

Which kind of loan is guaranteed?

VA

The term "capitalization rate" refers to?

The net income divided by the price